Firms' entry, monetary policy and the international business cycle

• 成果类型: Article
• 署名作者: Cavallari, Lilia
• 署名单位: Roma Tre University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2013.07.002
• 发表日期: 2013
• 页码: 263-274
• 关键词: Firm entry; International business cycle; international comovements; Comovement puzzles; Taylor rule; Firm markups

摘要

This paper proposes a two-country monetary model with firm entry as a means for alleviating the comovement puzzles in international business cycle models. It shows that business formation can generate fluctuations in output, employment, investment and trade flows close to those in the data while at the same time providing positive international comovements. Simulations show that the presence of imported investment goods is essential for replicating these facts. (C) 2013 Elsevier B.V. All rights reserved.