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Is the business cycle of Argentina "different?"

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Author Info
Finn E. Kydland
Calos E.J.M.Zarazaga

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Abstract

Despite the relative success of Real Business Cycle (RBC) models to replicate key moments of the business cycles of the United States and several European countries, economic research in Latin America tends to take the more traditional view that monetary factors play a predominant role in the economic fluctuations of countries in that part of the world. The different theoretical approach is often justified on the grounds that business cycles in Latin America are "different." However, few comparative studies have analyzed the relevant difference between the business cycles of Latin America and those of the United States and Europe. In this article, Finn Kydland and Carlos Zarazaga present business-cycle facts for Argentina, following as closely as possible the empirical methodology and statistics other studies have used to characterize U.S. and European business cycles. Overall, the authors find no a priori evidence that dynamic general equilibrium models, in which real shocks are the only source of economic fluctuations, cannot potentially account for as much of the Argentinean business cycle as such models do for business cycles in the United States and Europe.

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Publisher Info
Article provided by Federal Reserve Bank of Dallas in its journal Economic and Financial Policy Review.

Volume (Year): (1997)
Issue (Month): Q IV ()
Pages: 21-36
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Handle: RePEc:fip:fedder:y:1997:i:qiv:p:21-36

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Keywords: Business cycles ; Argentina;

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References listed on IDEAS
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  1. William T. Gavin & Finn E. Kydland, 1996. "Endogenous money supply and the business cycle," Working Paper 9605, Federal Reserve Bank of Cleveland. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alfredo Baldini, 2005. "Fiscal Policy and Business Cycles in an Oil-Producing Economy: The Case of Venezuela," IMF Working Papers 05/237, International Monetary Fund. [Downloadable!]
  2. Hildegart Ahumada & María Lorena Garegnani, 2000. "Assesing HP Filter Performance for Argentina and U.S. Macro Aggregates," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 257-284, November. [Downloadable!]
  3. Martin Uribe, 2006. "On Overborrowing," NBER Working Papers 11913, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Pablo A. Neumeyer & Fabrizio Perri, 2004. "Business Cycles in Emerging Economies: The Role of Interest Rates," NBER Working Papers 10387, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  5. Brigitte Desroches, 2004. "The Transmission of World Shocks to Emerging-Market Countries: An Empirical Analysis," Working Papers 04-44, Bank of Canada. [Downloadable!]
  6. Finn E. Kydland & Carlos E. J. M. Zarazaga, 2002. "Argentina's Lost Decade," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(1), pages 152-165, January. [Downloadable!] (restricted)
    Other versions:
  7. Jorge Enrique Restrepo & Claudio Soto, 2004. "Regularidades Empíricas de la Economía Chilena," Working Papers Central Bank of Chile 301, Central Bank of Chile. [Downloadable!]
  8. Martín Uribe, 2006. "Individual Versus Aggregate Collateral Constraints and the Overborrowing Syndrome," NBER Working Papers 12260, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Kamilya Tazhibayeva & Anna Ter-Martirosyan & Aasim M. Husain, 2008. "Fiscal Policy and Economic Cycles in Oil-Exporting Countries," IMF Working Papers 08/253, International Monetary Fund. [Downloadable!]
  10. Paul Castillo & Carlos Montoro & Vicente Tuesta, 2006. "Stylized Facts of the Peruvian Economy," Working Papers 2006-005, Banco Central de Reserva del Perú. [Downloadable!]
  11. Pacheco Jim�Nez, J.F., 2001. "Business cycles in small open economies: the case of Costa Rica," Working Papers - General Series 330, Institute of Social Studies. [Downloadable!]
  12. Agenor, Pierre-Richard & McDermott, C John & Prasad, Eswar S, 2000. "Macroeconomic Fluctuations in Developing Countries: Some Stylized Facts," World Bank Economic Review, Oxford University Press, vol. 14(2), pages 251-85, May. [Downloadable!]
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