Corsetti, Giancarlo; Dedola, Luca; Leduc, Sylvain - In: Journal of the European Economic Association 12 (2014) 1, pp. 153-176
This paper analyzes the cross-country effects of productivity and demand disturbances in the United States identified with sign restrictions based on standard theory. Productivity gains in US manufacturing increase US consumption and investment vis-à-vis foreign countries, resulting in a trade...