Tastes and technology in a two-country model of the business cycle: explaining international comovements
Article Abstract:
The ability of an economy to trade internationally results in smoother consumption over time due to the broken link between production and spending on consumption and investment. International consumption correlations approaching one and excessive investment volatility are produced in equilibrium models of business cycles which trade in the global financial market. The inclusion of nontraded goods yield similar results as business cycle implications of industrialized economies.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1995
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Gravity with gravitas: a solution to the border puzzle
Article Abstract:
A method of estimating the theoretical gravity related to trade flows, and calculating friction therein. The effects of GDP, distances, and national borders on the trade flows are also discussed.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2003
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