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• W2922811449 abstract "This chapter discusses the salient features of international trade and business cycles and summarizes the contributions of a particular branch of the literature on open economy macroeconomics. Becasue many macroeconomic time series are nonstationary, the computation of moments requires that the data be transformed to remove the nonstationarity. A commonly used transformation is the linear filter advocated by Hodrick and Prescott. The important properties of this filter are the following: (1) the filter will render stationary any time series that is integrated of order four or less and (2) when applied to quarterly data, the filter acts as a reasonable approximation to a high-pass filter that passes the cycles of frequency eight years or less with the customary value of λ = 1600 for the smoothing parameter. Recently, Baxter and King (1994) proposed a method for measuring business cycle components of models and data through the application of an approximate band-pass filter. The chapter also analyzes the effects of shocks to government spending and tax rates and reviews the literature on multi-good models of international business cycle." @default.
• W2922811449 created "2019-04-01" @default.
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• W2922811449 date "1995-01-01" @default.
• W2922811449 modified "2023-10-04" @default.
• W2922811449 title "Chapter 35 International trade and business cycles" @default.
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• W2922811449 doi "https://doi.org/10.1016/s1573-4404(05)80015-2" @default.
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