Medium Term Business Cycles in Developing Countries

This paper studies the transmission of business cycle fluctuations for developed (N ) to developing economies (S ) with a two-country, asymmetric, DSGE model with endogenous development of new technologies in N, and sunk costs of exporting and transferring the production of the intermediate goods to...

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Main Authors:	Comin, Diego, Loayza, Norman, Pasha, Farooq, Serven, Luis
Format:	Journal Article
Language:	en_US
Published:	American Economic Association 2014
Subjects:	Neoclassical aggregative model business cycle trade capital movements diffusion processes
Online Access:	http://hdl.handle.net/10986/20534

id	okr-10986-20534
recordtype	oai_dc
spelling	okr-10986-205342021-04-23T14:03:56Z Medium Term Business Cycles in Developing Countries Comin, Diego Loayza, Norman Pasha, Farooq Serven, Luis Neoclassical aggregative model business cycle trade capital movements diffusion processes This paper studies the transmission of business cycle fluctuations for developed (N ) to developing economies (S ) with a two-country, asymmetric, DSGE model with endogenous development of new technologies in N, and sunk costs of exporting and transferring the production of the intermediate goods to S. Consistent with the data, the flow of technologies from N to S co-moves positively with output in N and S; shocks to N have a large effect on S; business cycles in N lead over medium term fluctuations in S; the cross-correlation of outputs is larger than consumption; and interest rates in S are counter-cyclical. 2014-11-13T21:09:11Z 2014-11-13T21:09:11Z 2014-10 Journal Article American Economic Journal: Macroeconomics http://hdl.handle.net/10986/20534 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo American Economic Association American Economic Association Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Neoclassical aggregative model business cycle trade capital movements diffusion processes
spellingShingle	Neoclassical aggregative model business cycle trade capital movements diffusion processes Comin, Diego Loayza, Norman Pasha, Farooq Serven, Luis Medium Term Business Cycles in Developing Countries
description	This paper studies the transmission of business cycle fluctuations for developed (N ) to developing economies (S ) with a two-country, asymmetric, DSGE model with endogenous development of new technologies in N, and sunk costs of exporting and transferring the production of the intermediate goods to S. Consistent with the data, the flow of technologies from N to S co-moves positively with output in N and S; shocks to N have a large effect on S; business cycles in N lead over medium term fluctuations in S; the cross-correlation of outputs is larger than consumption; and interest rates in S are counter-cyclical.
format	Journal Article
author	Comin, Diego Loayza, Norman Pasha, Farooq Serven, Luis
author_facet	Comin, Diego Loayza, Norman Pasha, Farooq Serven, Luis
author_sort	Comin, Diego
title	Medium Term Business Cycles in Developing Countries
title_short	Medium Term Business Cycles in Developing Countries
title_full	Medium Term Business Cycles in Developing Countries
title_fullStr	Medium Term Business Cycles in Developing Countries
title_full_unstemmed	Medium Term Business Cycles in Developing Countries
title_sort	medium term business cycles in developing countries
publisher	American Economic Association
publishDate	2014
url	http://hdl.handle.net/10986/20534
_version_	1764445737617195008

Medium Term Business Cycles in Developing Countries

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