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Hecksher-Ohlin Business Cycles

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  • Alejandro Cunat

    (LSE)

  • Marco Maffezzoli

    (IGIER)

Abstract

This paper introduces Heckscher-Ohlin trade features into a two-country dynamic stochastic general equilibrium model, and studies the international transmission of productivity shocks through trade in goods. This framework improves upon existing international real business cycle models in that it generates business cycle properties comparable with the empirical evidence regarding the terms of trade and the trade balance. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2004.04.001
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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 7 (2004)
Issue (Month): 3 (July)
Pages: 555-585

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Handle: RePEc:red:issued:v:7:y:2004:i:3:p:555-585

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Keywords: International trade; Heckscher-Ohlin; Business cycles; Productivity shocks;

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References

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Citations

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Cited by:
  1. Rzigui, Lotfi, 2005. "External shocks and economic fluctuations: evidence from Tunisia," MPRA Paper 630, University Library of Munich, Germany, revised Dec 2005.
  2. Keyu Jin, 2009. "Industrial structure and financial capital flows," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 25827, London School of Economics and Political Science, LSE Library.
  3. Partha Chatterjee & Malik Shukayev, 2013. "A Stochastic Dynamic Model of Trade and Growth: Convergence and Diversi?cation," Working Papers, Development and Policies Research Center (DEPOCEN), Vietnam 07, Development and Policies Research Center (DEPOCEN), Vietnam.
  4. Almuth Scholl, 2002. "Limited Enforceable International Loans, International Risk Sharing and Trade," SFB 649 Discussion Papers SFB649DP2005-055, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany, revised Aug 2005.
  5. Claustre Bajona & Timothy J. Kehoe, 2006. "Demographics in Dynamic Heckscher-Ohlin Models: Overlapping Generations Versus Infinitely Lived Consumers," NBER Working Papers 12566, National Bureau of Economic Research, Inc.
  6. Jiandong Ju & Kang Shi & Shang-Jin Wei, 2011. "On the Connections between Intertemporal and Intra-temporal Trades," NBER Working Papers 17549, National Bureau of Economic Research, Inc.
  7. Igor Fedotenkov & Lex Meijdam, 2013. "Crisis and Pension System Design in the EU: International Spillover Effects Via Factor Mobility and Trade," De Economist, Springer, Springer, vol. 161(2), pages 175-197, June.

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