Information flows across international financial markets typically occur within hours, making volatility spillover appear contemporaneous in daily data. Such simultaneous transmission of variances is featured by the stochastic volatility model developed in this paper, in contrast to usually...

We build an equilibrium business cycle model in which agents cannot perfectly distinguish between the permanent and transitory components of TFP shocks and learn about those components using the Kalman filter. Calibrated to Mexico, the model predicts a higher variability of consumption relative...

The great recession of 2008-2009 resulted in a large fall in trade relative to output. Real trade fell roughly three times more than real GDP in the U.S. and Mexico, and by a factor of five in Canada. The decline in trade and output was particularly large in sectors with high levels of...

Existing results on the contribution of terms of trade and world interest rate shocks to output fluctuations in small open economies range from less than 10% to almost 90%. We argue that an identification problems lies at the heart of these vastly different results. In this paper, we overcome...

In this paper we examine the issue of asymmetry in the return and volatility spillover effects from the US equity market into the Canadian and Mexican equity markets. We model the conditional volatility of the returns in each of the three markets using the asymmetric power model of Ding, Granger...

This paper studies the interdependence between fiscal and monetary policy in a DSGE model with sticky prices and non-zero trend inflation. We characterize the fiscal and monetary policies by a rule whereby a given fraction k of the government debt must be backed by the discounted value of...

The premise of the Children in North America Project lies in the kind of world we live in today, an increasingly interdependent, complex, and connected world. It is a small world where school children living in a desert state or a prairie province know all about a tsunami because of images of...

This paper provides an overview of poverty in North America. In it we look at the three countries of North America, Mexico, the US, and to a lesser extent Canada and attempt to both describe poverty as it exists in the three countries and explore some of the correlates of poverty. In doing so,...

Globalization is changing the landscape of childhood. As part of such change, North America is also becoming more economically, socially, and culturally integrated. It is against this backdrop of economic, social, and cultural transformation that the Children in North America Project is...