Labor adjustment costs, macroeconomic shocks and real business cycles in a small open economy

2000 ◽  
Vol 22 (4) ◽  
pp. 671-694 ◽  
Author(s):  
Pene Kalulumia ◽  
Francine Nyankiye
Keyword(s):  
Business Cycles ◽  
Open Economy ◽  
Small Open Economy ◽  
Adjustment Costs ◽  
Macroeconomic Shocks ◽  
Real Business Cycles ◽  
Labor Adjustment Costs ◽  
Labor Adjustment

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.

scholarly journals Real Business Cycles in Emerging Countries?

2010 ◽  
Vol 100 (5) ◽  
pp. 2510-2531 ◽  
Author(s):  
Javier García-Cicco ◽  
Roberto Pancrazi ◽  
Martín Uribe
Keyword(s):  
Business Cycles ◽  
Open Economy ◽  
Structural Parameters ◽  
Small Open Economy ◽  
Emerging Countries ◽  
Friction Model ◽  
Financial Friction ◽  
Productivity Shocks ◽  
Real Business Cycles ◽  
Business Cycle Model

We use more than a century of Argentine and Mexican data to estimate the structural parameters of a small-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job of explaining business cycles in emerging countries. We then estimate an augmented model that incorporates shocks to the country premium and financial frictions. We find that the estimated financial-friction model provides a remarkably good account of business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks. (JEL E13, E32, E44, F43, O11, O16)

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

On recalls, layoffs, variable hours, and labor adjustment costs

1984 ◽  
Vol 8 (3) ◽  
pp. 265-275 ◽  
Author(s):  
John M. Barron ◽  
Mark A. Loewenstein ◽  
Dan A. Black
Keyword(s):  
Adjustment Costs ◽  
Labor Adjustment Costs ◽  
Labor Adjustment
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