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International Finance Discussion Papers: Technology Shocks: Novel Implications for International Business Cycles - Softcover

Raffo, Andrea

 
9781288725045: International Finance Discussion Papers: Technology Shocks: Novel Implications for International Business Cycles
Softcover
ISBN 10: 1288725043 ISBN 13: 9781288725045
Publisher: BiblioBazaar, LLC, 2013

Synopsis

Understanding the joint dynamics of international prices and quantities remains a central issue in international business cycles. International relative prices appreciate when domestic consumption and output increase more than their foreign counterparts. In addition, both trade flows and trade prices display sizable volatility. This paper incorporates Hicks-neutral and investment-specific technology shocks into a standard two-country general equilibrium model with variable capacity utilization and weak wealth effects on labor supply. Investment-specific technology shocks introduce a source of fluctuations in absorption similar to taste shocks, thus reconciling theory and data. The paper also presents implications for the transmission mechanism of technology shocks across countries and for the Barro and King (1984) critique of investment shocks.

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Product Description

Understanding the joint dynamics of international prices and quantities remains a central issue in i....

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Publisher
BiblioBazaar, LLC
Publication date
2013
Language
English
ISBN 10 
1288725043
ISBN 13 
9781288725045
Binding
Paperback
Number of pages
58