International business cycle accounting

Arbeitspapier

In this paper, I extend the business cycle accounting method a la Chari, Kehoe and McGrattan (2007) to a two-country international business cycle model and quantify the effect of the disturbances in relevant markets on the business cycle correlation between Japan and the US over the 1980-2008 period. I find that disturbances in the labor market and production efficiency are important in accounting for the recent increase in the cross-country output correlation. Financial globalization can be the cause of the recent increase in cross-country output correlation if it operated through an increase in the cross-country correlation of disturbances in the labor market and production efficiency, not in the domestic or international capital markets.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: School of Economics Discussion Papers ; No. 10,10

Classification and Topics

• Classification: Wirtschaft ; Business Fluctuations; Cycles ; Open Economy Macroeconomics
• Subject: business cycle accounting ; international business cycles ; financial globalization

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Otsu, Keisuke
• Event: Veröffentlichung
• (who): University of Kent, School of Economics
• (where): Canterbury
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/50568
• Last update: 10.03.2025, 11:45 AM CET