Oviedo, P. Marcelo; Singh, Rajesh - Department of Economics, Iowa State University - 2008
Backus, Kehoe, and Kydland (International Real Business Cycles, JPE, 100 (4), 1992) documented several discrepancies between the observed post-war business cycles of developed countries and the predictions of a two-country, complete-market model. The main discrepancy dubbed as the quantity...