Business cycles in small, open economies: Evidence from panel data between 1900 and 2013

Arbeitspapier

Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods. We find that financial frictions are an important feature for not only developing countries but also small developed countries. Furthermore, business cycles in both groups of countries are marked with trend productivity shocks. Common disturbances explain one-third of the fluctuations in small, open economies (both developed and developing), especially during important worldwide phenomena.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Canada Staff Working Paper ; No. 2016-48

Classification and Topics

• Classification: Wirtschaft ; Open Economy Macroeconomics ; International Business Cycles ; General Aggregative Models: Neoclassical ; Business Fluctuations; Cycles
• Subject: Business fluctuations and cycles ; Economic models ; International topics

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Miyamoto, Wataru ; Nguyen, Thuy Lan
• Event: Veröffentlichung
• (who): Bank of Canada
• (where): Ottawa
• (when): 2016

Further information

• DOI: doi:10.34989/swp-2016-48
• Handle: http://hdl.handle.net/10419/171939
• Last update: 10.03.2025, 11:43 AM CET