Intro -- Contents -- I. INTRODUCTION -- II. ESTIMATING THE EFFECTS OF TECHNOLOGY SHOCKS -- III. POSSIBLE PITFALLS IN THE ESTIMATION OF THE EFFECTS OF TECHNOLOGY SHOCKS -- IV. EXPLAINING THE EFFECTS OF TECHNOLOGY SHOCKS -- V. TECHNOLOGY SHOCKS AND THE BUSINESS CYCLE IN AN ESTIMATED DSGE MODEL --...

This paper examines the mechanisms through which output volatility is related to trade openness using an industry-level panel dataset of manufacturing production and trade. The main results are threefold. First, sectors more open to international trade are more volatile. Second, trade is...