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dc.contributor.authorENDERS, Zeno
dc.contributor.authorMÜLLER, Gernot J.
dc.date.accessioned2007-01-12T09:22:35Z
dc.date.available2007-01-12T09:22:35Z
dc.date.issued2006
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/6449
dc.description.abstractUsing vector autoregressions on U.S. time series, we find that technology shocks induce an ‘S’- shaped cross-correlation function for the trade balance and the terms of trade (S-curve). In calibrating a prototypical international business cycle model to match the S-curve under complete and incomplete financial markets, we find two distinct sets of parameter values. While both model specifications deliver the S-curve, the underlying transmission mechanism of technology shocks is fundamentally different. Most importantly, only in the incomplete markets economy the terms of trade appreciate and thus amplify the relative wealth effects of technology shocks - as suggested by time series evidence.en
dc.format.extent675470 bytes
dc.format.mimetypeapplication/pdf
dc.language.isoenen
dc.publisherEuropean University Institute
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2006/36en
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectS-curveen
dc.subjectTechnology shocksen
dc.subjectTerms of tradeen
dc.subjectTrade balanceen
dc.subjectIncomplete marketsen
dc.subjectF41en
dc.subjectE32en
dc.subjectF32en
dc.titleS-Curve Redux: On the International Transmission of Technology Shocksen
dc.typeWorking Paperen
dc.neeo.contributorENDERS|Zeno|aut|
dc.neeo.contributorMUELLER|Gernot J|aut|
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