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International Home Bias in International Finance and Business Cycles

Lewis, Karen K. - 2008

portfolio theory would suggest. This phenomenon has been called equity home bias.' In the absence of this home bias, investors …

Persistent link: https://www.econbiz.de/10012774915

Business Cycle Volatility and Openness : An Exploratory Cross-Section Analysis

Razin, Asaf; Rose, Andrew - 2022

This paper links business cycle volatility to barriers on international mobility of goods and capital. Theory predicts …

Persistent link: https://www.econbiz.de/10014074148

Exchange Rate Flexibility and the Transmission of Business Cycles

Macedo, Jorge Braga de; Meerschwam, David M. - 2021

This paper presents a very simple model of the effects of flexible exchange rates in the transmission of business cycles. The starting point is the traditional "locomotive" effect, through exports and imports. Aside from this horizontal transmission, the intertemporal exchange rate model...

Persistent link: https://www.econbiz.de/10013232459

Business Cycles and the Asset Structure of Foreign Trade

Baxter, Marianne - 2010

International financial market linkages are widely believed to be important for the international transmission of business cycles, since these govern the extent to which individuals can smooth consumption in the presence of country-specific shocks to income. This paper develops a two-country,...

Persistent link: https://www.econbiz.de/10012763571

News Shocks in Open Economies : Evidence from Giant Oil Discoveries

Arezki, Rabah - 2015

This paper explores the effect of news shocks on the current account and other macroeconomic variables using worldwide giant oil discoveries as a directly observable measure of news shocks about future output–the delay between a discovery and production is on average 4 to 6 years. We first...

Persistent link: https://www.econbiz.de/10013030068

How Important are Terms of Trade Shocks?

Schmitt-Grohé, Stephanie - 2015

According to conventional wisdom, terms of trade shocks represent a major source of business cycles in emerging and poor countries. This view is largely based on the analysis of calibrated business-cycle models. We argue that the view that emerges from empirical SVAR models is strikingly...

Persistent link: https://www.econbiz.de/10013021464

A Small Open Economy in Depression : Lessons from Canada in the 1930s

Betts, Caroline M.; Bordo, Michael D.; Redish, Angela - 2021

to a common, permanent output shock leaving little significant role for idiosyncratic disturbances originating in either …

Persistent link: https://www.econbiz.de/10013229833

Tastes and Technology in a Two-Country Model of the Business Cycle : Explaining International Comovements

Stockman, Alan C.; Tesar, Linda L. - 2021

This paper studies the international transmission of business cycles by developing a two-country real business-cycle model and confronting it with a broad set of empirical observations. These observations include variances and covariances of output, labor, consumption, employment, and investment...

Persistent link: https://www.econbiz.de/10013210682

Flexibility of Adjustment to Shocks : Economic Growth and Volatility of Middle-Income Countries Before and after the Global Financial Crisis of 2008

Aizenman, Joshua - 2017

The pronounced and persistent impact of the global financial crisis of 2008 motivates our empirical analysis of the role of institutions and macroeconomic fundamentals on countries' adjustment to shocks. Our empirical analysis shows that the associations of growth level, growth volatility,...

Persistent link: https://www.econbiz.de/10012954940

TFP, News, and "Sentiments : " the International Transmission of Business Cycles

Levchenko, Andrei A. - 2015

We propose a novel identification scheme for a non-technology business cycle shock, that we label "sentiment." This is … a shock orthogonal to identified surprise and news TFP shocks that maximizes the short-run forecast error variance of an … shock produces a business cycle in the US, with output, hours, and consumption rising following a positive shock, and …

Persistent link: https://www.econbiz.de/10013026790