scholarly journals Economic migration and business cycles in a small open economy with matching frictions

2019 ◽  
Vol 81 ◽  
pp. 604-620 ◽  
Author(s):  
Matija Lozej
Keyword(s):  
Business Cycles ◽  
Open Economy ◽  
Small Open Economy ◽  
Matching Frictions ◽  
Economic Migration

Business cycles in a small open economy

1995 ◽  
Vol 39 (6) ◽  
pp. 1089-1113 ◽  
Author(s):  
Isabel Correia ◽  
João C. Neves ◽  
Sergio Rebelo
Keyword(s):  
Business Cycles ◽  
Open Economy ◽  
Small Open Economy

scholarly journals Interest Rates, Leverage, and Business Cycles in Emerging Economies: The Role of Financial Frictions

2015 ◽  
Vol 7 (3) ◽  
pp. 153-188 ◽  
Author(s):  
Andrés Fernández ◽  
Adam Gulan
Keyword(s):  
Business Cycles ◽  
Interest Rates ◽  
Open Economy ◽  
Emerging Economies ◽  
Financial Frictions ◽  
Small Open Economy ◽  
Financial Data ◽  
Cycle Model ◽  
Business Cycle Model

Countercyclical country interest rates have been shown to be an important characteristic of business cycles in emerging markets. In this paper we provide a microfounded rationale for this pattern by linking interest rate spreads to the dynamics of corporate leverage. For this purpose we embed a financial accelerator into a business cycle model of a small open economy and estimate it on a novel panel dataset for emerging economies that merges macroeconomic and financial data. The model accounts well for the empirically observed countercyclicality of interest rates and leverage, as well as for other stylized facts. (JEL E13, E32, E43, E44, F41, O11)

scholarly journals BUSINESS CYCLES, GROWTH, AND IMPORTED ENERGY IN A SMALL-OPEN GROWTH MODEL

2018 ◽  
Vol 3 (2) ◽  
pp. 7-21 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Business Cycles ◽  
Growth Model ◽  
Open Economy ◽  
Small Open Economy ◽  
Economic Growth Model ◽  
Constant Coefficients ◽  
Open Growth ◽  
Two Sectors ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

This paper generalizes an economic growth model proposed by Zhang (2017) by allowing all constant coefficients to be time-dependent. This paper shows existence of business cycles in the generalized model due to periodic shocks. Zhang’s original model is developed for a small open economy with imported energy and imported goods. The economy is composed of two sectors and all markets are perfectly competitive. The economy has fixed land and population. Production side is the same as in neoclassical growth theory, while demand side is modelling with Zhang’s utility and concept of disposable income. We generalize and simulate the model. We demonstrate existence of business cycles due to different exogenous periodic shocks.

scholarly journals Terms of Trade, Intermediate Goods and International Real Business Cycles: Australia Case

2004 ◽  
Vol 5 (2) ◽  
pp. 95-111
Author(s):  
Jai Hyung Yoon ◽  
Francis In Yoon
Keyword(s):  
Business Cycles ◽  
Business Cycle ◽  
Open Economy ◽  
Manufacturing Sector ◽  
Dominant Role ◽  
Small Open Economy ◽  
Terms Of Trade ◽  
Intermediate Goods ◽  
Real Business Cycles ◽  
Productivity Shock

This paper examines whether a two-sector business cycle model with intermediate and import goods successfully replicates stylized facts of the international real business cycle in a small open economy. Our model incorporates the neoclassical framework, with productivity shocks in both manufacturing and non-manufacturing sectors, terms of trade shock, import goods and intermediate goods. Our model is able to mimic the important features of business cycles in Australia. The productivity shock of the non-manufacturing sector has a dominant role in a small open economy's business cycle. The productivity shock of the non-manufacturing sector increases imports more than exports.

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