This paper builds a Bayesian VAR estimation model of growth for Canada, by focusing specifically on the role of external and domestic financial indicators, including credit conditions. A variance decomposition shows that financial conditions explain one-third of the total variability in Canada's...

Structural models are apowerful tool for business cycle and monetary analysis because they are invariant to either policy changes or external stocks. In this paper, we derive a sidrauski-type model in which both the demand and supply side are structural in the sense that the behavorial equations...

The pioneering work of Meese and Rogoff (193) and, more recently, the work of Flood and Rose (1995) showed conclisively, that traditional Fundamentals of Exchange rate behavior offer little hope of explaining the international business cycle of the 1980s. In this paper we present a model which...

This paper develops a RBC model amended for variable utilization and weak complementarity of capital and labor inputs. The authors show that variable utilization magnifies the instantaneous impact of an aggregate shock on factor inputs and output, and provides the model with a strong propagation...

We develop a business cycle model in which consumption goods, physical capital and human capital are produced in separate sectors.