Sources of international business fluctuations: Country-specific shocks or worldwide shocks?

• 成果类型: Article
• 署名作者: Kwark, NS
• 署名单位: Texas A&M University System; Texas A&M University College Station
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(98)00050-6
• 发表日期: 1999
• 页码: 367-385
• 关键词: worldwide shocks; Country-specific shocks; structural VAR model

摘要

This paper identifies sources of business fluctuations in a two-country open economy model with the structural VAR method, focusing on the relative importance of worldwide shocks and country-specific shocks. Unlike previous studies which define country-specific shocks as labor supply shocks, this study explicitly identifies three kinds of permanent shocks: worldwide shocks, domestic country-specific shocks, and foreign country-specific shocks with identifying restrictions derived from a theoretical model. The main finding is that U.S. country-specific shocks are the most important in explaining U.S. and foreign output fluctuations except in the short-run. (C) 1999 Elsevier Science BN. All rights reserved.