Johri, Alok; Letendre, Marc-André; Luo, Daqing - In: Journal of Macroeconomics 33 (2011) 4, pp. 511-523
effect of OC on international investment flows in the context of a two-country real business cycle model. The presence of OC … introduces novel considerations into agents’ investment decisions since current investment and future productivity levels are … country, investment increases in both countries, producing positive international co-movement in investment, a feature of the …