International risk sharing and the transmission of productivity shocks

Review of Economic Studies

Volumn 75, Issue 2, 2008, Pages 443-473

  Corsetti, Giancarlo ^a,b   Dedola, Luca ^b,c   Leduc, Sylvain ^d  

^a EUROPEAN UNIVERSITY INSTITUTE   (Italy)

^b CEPR ^*

^c EUROPEAN CENTRAL BANK   (Germany)

^d FEDERAL RESERVE BOARD   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

BUSINESS CYCLE; CORRELATION; EMPIRICAL ANALYSIS; PRODUCTIVITY; QUANTITATIVE ANALYSIS; REAL EXCHANGE RATE; TERMS OF TRADE; TRADE FLOW;

NORTH AMERICA; UNITED STATES;

EID: 40449136103     PISSN: 00346527     EISSN: 1467937X     Source Type: Journal    
DOI: 10.1111/j.1467-937X.2008.00475.x     Document Type: Article

References (44)

1. ANDERSON, J. and VAN WINCOOP, E. (2004), "Trade Costs", Journal of Economic Literature, 42, 691-751.
2. BACKUS, D. K., KEHOE, P. J. and KYDLAND, F. E. (1995), "International Business Cycles: Theory and Evidence", in T. F. Cooley (ed.) Frontiers of Business Cycle Research (Princeton: Princeton University Press) 331-356.
3. BACKUS, D. K. and SMITH, G. W. (1993), "Consumption and Real Exchange Rates in Dynamic Economies with Non-Traded Goods", Journal of International Economics, 35, 297-316.
4. BAXTER, M. (1995), "International Trade and Business Cycles", in G. Grossman and K. Rogoff (eds.) Handbook of International Economics (Amsterdam: Elsevier North Holland) 1801-1864.
5. BAXTER, M. and CRUCINI, M. J. (1995), "Business Cycles and the Asset Structure of Foreign Trade", International Economic Review, 36, 821-854.
6. BERNARD, A. B., EATON, J., JENSEN, J. B. and KORTUM, S. (2003), "Plants and Productivity in International Trade", American Economic Review, 93, 1268-1290.
7. BETTS, C. and KEHOE, P. (2001), "Real Exchange Rate Movements and the Relative Price of Non Traded Goods" (Federal Reserve Banks of Minneapolis, Research Department Staff Report 334).
8. BURSTEIN, A. T., EICHENBAUM, M. and REBELO, S. (2005), "Large Devaluations and the Real Exchange Rate", Journal of Political Economy, 113 (4), 742-784.
9. BURSTEIN, A. T., NEVES, J. and REBELO, S. (2003), "Distribution Costs and Real Exchange Rate Dynamics During Exchange-Rate-Based Stabilizations", Journal of Monetary Economics, 50, 1189-1214.
10. BURSTEIN, A. T., NEVES, J. and REBELO, S. (2004), "Investment Prices and Exchange Rates: Some Basic Facts", Journal of the European Economic Association, 2, 302-309.
11. CHARI, V. V., KEHOE, P. J. and MCGRATTAN, E. (2002), "Can Sticky Prices Generate Volatile and Persistent Real Exchange Rates?", Review of Economic Studies, 69, 633-663.
12. COGLEY, T. and NASON, J. M. (1995), "Output Dynamics in Real-Business-Cycle Models", American Economic Review, 85, 492-511.
13. COLE, H. L. and OBSTFELD, M. (1991), "Commodity Trade and International Risk Sharing: How Much Do Finacial Markets Matter?", Journal of Monetary Economics, 28, 3-24.
14. CORSETTI, G. and DEDOLA, L. (2002), "Macroeconomics of International Price Discrimination" (European Central Bank Working Paper Series 176).
15. CORSETTI, G. and DEDOLA, L. (2005), "A Macroeconomic Model of International Price Discrimination", Journal of International Economics, 67, 129-155.
16. CORSETTI, G., DEDOLA, L. and LEDUC, S. (2004), "International Risk Sharing and the Transmission of Productivity Shocks" (Centre for Economic Policy Research Discussion Paper No. 4746).
17. CORSETTI, G., DEDOLA, L. and LEDUC, S. (2005), "DSGE models of High Exchange Rate Volatility and Low Pass-Through" (Board of Governors of the Federal Reserve System International Finance Discussion Papers No. 2005-845).
18. CORSETTI, G., DEDOLA, L. and LEDUC, S. (2006), "Productivity, External Balance and Exchange Rates: Evidence on the Transmission Mechanism Among G7 Countries" (NBER Working Paper No. 12483, forthcoming in NBER International Studies on Macroeconomics 2006).
19. CORSETTI, G., DEDOLA, L. and LEDUC, S. (2007), "Productivity and the Dollar" (Mimeo, European University Institute).
20. CORSETTI, G. and PESENTI, P. (2001), "Welfare and Macroeconomic Interdependence", Quarterly Journal of Economics, 116, 421-445.
21. CORSETTI, G. and PESENTI, P. (2005), "International Dimensions of Optimal Monetary Policy", Journal of Monetary Economics, 52, 281-305.
22. CRUCINI, M., TELMER, C. and ZACHARIADIS, M. (2005), "Understanding European Exchange Rates", American Economic Review, 95 (3), 724-738.
23. DEN HAAN, W. J. and MARCET, A. (1994), "Accuracy in Simulations", Review of Economic Studies, 61 (1), 3-18.
24. DORNBUSCH, R. (1989), "Real Exchange Rates and Macroeconomics: A Selective Survey", Scandinavian Journal of Economics, 91, 401-432.
25. ENGEL, C. (1999), "Accounting for Real Exchange Rate Changes", Journal of Political Economy, 107, 507-538.
26. HEATHCOTE, J. and PERRI, F. (2002), "Financial Autarky and International Business Cycles", Journal of Monetary Economics, 49, 601-627.
27. HOOPER, P., JOHNSON, K. and MARQUEZ, J. (2000), "Trade Elasticities for the G-7 Countries" (Princeton Studies in International Economics No. 87).
28. KING, R. G. and WATSON, M. W. (1998), "The Solution of Singular Linear Difference Systems Under Rational Expectations", International Economic Review, 39, 1015-1026.
29. KOLLMANN, R. (1995), "Consumption, Real Exchange Rates and the Structure of International Asset Markets", Journal of International Money and Finance, 14 (2), 191-211.
30. LEE, B.-S. and INGRAM, B. F. (1991), "Simulation Estimation of Time-Series Models", Journal of Econometrics, 47 (2-3), 197-205.
31. LEWIS, K. K. (1996), "What Can Explain the Apparent Lack of International Consumption Risk Sharing?", Journal of Political Economy, 104 (2), 267-297.
32. LEWIS, K. K. (1999), "Trying to Explain the Home Bias in Equity and Consumption", Journal of Economic Literature, 37, 571-608.
33. LUCAS, R. E. Jr. (1982), "Interest Rates and Currency Prices in a Two-Country World", Journal of Monetary Economics, 32, 335-359.
34. MENDOZA, E. (1991), "Real Business Cycles in a Small Open Economy", American Economic Review, 81 (4), 797-818.
35. OBSTFELD, M. (1990), "Intertemporal Dependence, Impatience, and Dynamics", Journal of Monetary Economics, 26, 45-75.
36. OBSTFELD, M. and ROGOFF, K. (2000), "New Directions for Stochastic Open Economy Models", Journal of International Economics, 50, 117-154.
37. OBSTFELD, M. and ROGOFF, K. (2001), "The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?", in B. Bernanke and K. Rogoff (eds.) NBER Macroeconomics Annual 2000 (Cambridge, MA: MIT Press) 339-390.
38. RAVN, M. (2001), "Consumption Dynamics and Real Exchange Rates" (Mimeo, London Business School).
39. SCHMITT-GROHÉ, S. and URIBE, M. (2003), "Closing Small Open Economy Models", Journal of International Economics, 61 (1), 163-185.
40. STOCKMAN, A. (1998), "New Evidence Connecting Exchange Rates to Business Cycles", Federal Reserve Bank of Richmond Economic Quarterly, 84, 73-89.
41. STOCKMAN, A. C. and TESAR, L. (1995), "Tastes and Technology in a Two-Country Model of the Business Cycle: Explaining International Comovements", American Economic Review, 83, 473-486.
42. TAYLOR, J. (1993) Macroeconomic Policy in a World Economy: From Economic Design to Practical Operation (New York, NY: Norton).
43. TIROLE, J. (1995) The Theory of Industrial Organization (Cambridge, MA: MIT Press).
44. WHALLEY, J. (1985) Trade Liberalization Among Major World Trading Areas (Cambridge, MA: MIT Press).