Pentecôte, J.-S.; Poutineau, J.-C.; Rondeau, F. - In: Open Economies Review 26 (2015) 1, pp. 61-79
This paper questions the impact of trade integration on business cycle sychronization in the EMU by distinguishing increase of existing trade flows (the intensive margin) and creation of new trade flows (the extensive margin). Using a DSGE model, we find that synchronization is weakened when new...