: the reciprocal of the terms of trade. Cast this way, a change in the terms of trade acts as a productivity shock. Or does … then generalizing, we show that changes in the terms of trade have no first-order effect on productivity when output is …

: the reciprocal of the terms of trade. Cast this way, a change in the terms of trade acts as a productivity shock. Or does … then generalizing, we show that changes in the terms of trade have no first-order effect on productivity when output is …

: the reciprocal of the terms of trade. Cast this way, a change in the terms of trade acts as a productivity shock. Or does … then generalizing, we show that changes in the terms of trade have no first-order effect on productivity when output is …

: the reciprocal of the terms of trade. Cast this way, a change in the terms of trade acts as a productivity shock. Or does … then generalizing, we show that changes in the terms of trade have no first-order effect on productivity when output is …

the real economy. The model is calibrated to Mexico. Numerical experiments show that terms of trade shocks alone account … than the volatility of output. Plugging productivity and terms of trade shocks into the model generates a consumption …

: the reciprocal of the terms of trade. Cast this way, a change in the terms of trade acts as a productivity shock. Or does … then generalizing, we show that changes in the terms of trade have no first-order effect on productivity when output is …

This paper analyzes how terms of trade affect aggregate productivity using a two-country monopolistic competitive …’s productivity is affected by the terms of trade. This introduces a novel mechanism for business cycle synchronization. Moreover, for … how terms of trade movements can lead to excess volatility of consumption and highly persistent productivity. On the …