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In this paper, we first introduce investment-specific technology (IST) shocks to an otherwise standard international real business cycle model and show that a thoughtful calibration of them along the lines of Raffo (2009) successfully addresses the ""quantity"", ""international comovement"",...
Persistent link: https://www.econbiz.de/10014397271
This paper provides the first assessment of the contribution of idiosyncratic shocks to aggregate fluctuations in an emerging market using confidential data on the universe of Chilean firms. We find that idiosyncratic shocks account for more than 40 percent of the volatility of aggregate sales....
Persistent link: https://www.econbiz.de/10012795043
How does access to credit impact consumption volatility? Theory and evidence from advanced economies suggests that greater household access to finance smooths consumption. Evidence from emerging markets, where consumption is usually more volatile than income, indicates that financial reform...
Persistent link: https://www.econbiz.de/10014395178
neutral technology shock compare in a marginal likelihood race. To that end we construct and estimate several competing small … different hypotheses that generate the empirically observed decline in worked hours after a positive technology shock. These …
Persistent link: https://www.econbiz.de/10009621642
neutral technology shock compare in a marginal likelihood race. To that end we construct and estimate several competing small … different hypotheses that generate the empirically observed decline in worked hours after a positive technology shock. These …
Persistent link: https://www.econbiz.de/10014395701
Our answer: Not so well. We reached that conclusion after reviewing recent research on the role of technology as a source of economic fluctuations. The bulk of the evidence suggests a limited role for aggregate technology shocks, pointing instead to demand factors as the main force behind the...
Persistent link: https://www.econbiz.de/10014403910
Persistent link: https://www.econbiz.de/10011281617
This paper analyses the extent to which financial integration impacts the manner in which terms of trade affect business cycles in emerging economies. Using a s mall open economy model, we show that as capital account openness increases in an economy that faces trade shocks, business cycle...
Persistent link: https://www.econbiz.de/10011705394
We build a small open economy, real business cycle model with labor market frictions to evaluate the role of employment protection in shaping business cycles in emerging economies. The model features matching frictions and an endogenous selection effect by which inefficient jobs are destroyed in...
Persistent link: https://www.econbiz.de/10014397095
This paper extends the equilibrium business cycle framework to incorporate ex ante skill heterogeneity among workers. Consistent with the empirical evidence, skilled and unskilled workers in the model face the same degree of cyclical variation in real wages although unskilled workers are subject...
Persistent link: https://www.econbiz.de/10014397788