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• W2024837070 abstract "This paper reexamines the question of how to explain business cycle co-movements within and between countries. First, we present a simple flexible price models to illustrate how and why news shocks can generate robust positive co-movements in economic activity across countries. We also discuss under what conditions a two-sector version of the model generates appropriate business cycle patterns within countries. Second, we develop a quantitative two-country two-sector model that is capable of replicating news driven international business cycles. The model is a two-country extension of the closed economy model of Beaudry and Portier (2004), in which there are limited possibilities to reallocate factors between investment and consumption-good sectors." @default.
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• W2024837070 date "2011-01-01" @default.
• W2024837070 modified "2023-10-01" @default.
• W2024837070 title "Modeling news-driven international business cycles" @default.
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• W2024837070 doi "https://doi.org/10.1016/j.red.2010.11.002" @default.
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