S-Curve Redux: On the International Transmission of Technology Shocks

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dc.contributor.author ENDERS, Zeno
dc.contributor.author MÜLLER, Gernot J.
dc.date.accessioned 2007-01-12T09:22:35Z
dc.date.available 2007-01-12T09:22:35Z
dc.date.issued 2006
dc.identifier.issn 1725-6704
dc.identifier.uri http://hdl.handle.net/1814/6449
dc.description.abstract Using 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.extent 675470 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher European University Institute
dc.relation.ispartofseries EUI ECO en
dc.relation.ispartofseries 2006/36 en
dc.subject S-curve en
dc.subject Technology shocks en
dc.subject Terms of trade en
dc.subject Trade balance en
dc.subject Incomplete markets en
dc.subject F41 en
dc.subject E32 en
dc.subject F32 en
dc.title S-Curve Redux: On the International Transmission of Technology Shocks en
dc.type Working Paper en
dc.neeo.contributor ENDERS|Zeno|aut|
dc.neeo.contributor MUELLER|Gernot J|aut|
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