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This paper examines the effects of trade costs on macroeconomic volatility. We first construct a dynamic, two-country general equilibrium model, where the degree of market integration depends directly on trade costs (transport costs, tariffs, etc.). The model is a extension of Obstfeld and...
Persistent link: https://www.econbiz.de/10012783054
We analyze empirically whether trade and financial linkages between two countries increase the synchronization of their business cycles directly or indirectly. In a system of equations, we use a newly processed database on the bilateral linkages of a small open economy, namely Spain. We prefer...
Persistent link: https://www.econbiz.de/10012921979
This paper develops a new empirical framework for analyzing the dynamics of the trade balance in response to different types of macroeconomic shocks. The model provides a synthetic perspective on the conditional correlations between the business cycle and the trade balance that are generated by...
Persistent link: https://www.econbiz.de/10013317705
This paper develops a new empirical framework for analyzing the dynamics of the trade balance in response to different types of macroeconomic shocks. The model provides a synthetic perspective on the conditional correlations between the business cycle and the trade balance that are generated by...
Persistent link: https://www.econbiz.de/10014133644
Persistent link: https://www.econbiz.de/10001284158
A Real Business Cycle model of the UK is developed to account for the behaviour of UK nonstationary macro data. The model, when tested by the method of indirect inference, can explain the behaviour of main variables (GDP, real exchange rate, real interest rate). We use it to explain how 'crisis'...
Persistent link: https://www.econbiz.de/10013102704
Persistent link: https://www.econbiz.de/10001385862
, Latvia, Poland, Russia and Slovenia) over the period 1987-95. We find that the most important factor driving overall … Latvia and Russia. Pensions, paradoxically, also pushed inequality up in Central Europe, while non-pension social transfers …
Persistent link: https://www.econbiz.de/10014197308
average) to 35?38 (above OECD average) in less than 10 years. In some countries, such as Bulgaria, Russia, and Ukraine, the …-95), Hungary (1987-93), Latvia (1989-96), Poland (1987-95), Russia (1989-94), and Slovenia (1987-95). In all countries, wage … inequality has increased (in some, like Russia, dramatically); income from self-employment has remained as unequal as before but …
Persistent link: https://www.econbiz.de/10014197472
Persistent link: https://www.econbiz.de/10002190636