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Online Appendix to Human Capital and International Real Business Cycles

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  • Marco Maffezzoli

    (IGIER)

Abstract

Standard international real business cycle models are generally unable to replicate the observed comovements of all the main aggregate variables: in particular, they generate low or negative international comovements in output, investment, and labour. I simulated a two-country, two-sector stochastic endogenous growth model that embodies an externality linking human capital across countries. This model is able to reproduce positive international correlations for all the main variables, and is partially able to reproduce their ranking. These results are robust to changes in the entire set of parameters, as shown in a global sensitivity analysis performed by applying Canova's methodology.

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Bibliographic Info

Paper provided by Review of Economic Dynamics in its series Technical Appendices with number maffezzoli00.

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Length: 31 pages
Date of creation: May 1998
Date of revision:
Handle: RePEc:red:append:maffezzoli00

Note: The original article was published in the Review of Economic Dynamics, volume 3 (2000), pages 137-165
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Related research

Keywords: stochastic growth models; international comovements; investment comovements; human capital; knowledge spillovers;

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References

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Citations

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Cited by:
  1. Pakko, Michael R., 2004. "A spectral analysis of the cross-country consumption correlation puzzle," Economics Letters, Elsevier, Elsevier, vol. 84(3), pages 341-347, September.
  2. Martin Boileau, 1999. "Trade in Capital Goods and Investment-Specific Technical Change," Cahiers de recherche CREFE / CREFE Working Papers, CREFE, Université du Québec à Montréal 68, CREFE, Université du Québec à Montréal.
  3. Jing Dang & Max Gillman & Michal Kejak, 2011. "Real Business Cycles with a Human Capital Investment Sector and Endogenous Growth: Persistence, Volatility and Labor Puzzles," IEHAS Discussion Papers, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences 1128, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  4. Jang-Ting Guo & Sharon G. Harrison, 2008. "Indeterminacy with No-Income-Effect Preferences and Sector-Specific Externalities," Working Papers 200809, University of California at Riverside, Department of Economics, revised Jul 2008.
  5. Max Gillman, 2013. "Lost in Translation: Unified Consumption Theory, Dynamic AS-AD, and Business Cycles," IEHAS Discussion Papers, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences 1305, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  6. Parantap Basu & Max Gillman & Joseph Pearlman, 2010. "Inflation, Human Capital and Tobin's q," IEHAS Discussion Papers, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences 1017, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  7. Alessia Paccagnini, 2012. "Comparing Hybrid DSGE Models," Working Papers, University of Milano-Bicocca, Department of Economics 228, University of Milano-Bicocca, Department of Economics, revised Dec 2012.
  8. Paccagnini, Alessia, 2010. "DSGE Model Validation in a Bayesian Framework: an Assessment," MPRA Paper 24509, University Library of Munich, Germany.
  9. Cuñat, Alejandro & Maffezzoli, Marco, 2002. "Heckscher-Ohlin Business Cycles," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3382, C.E.P.R. Discussion Papers.
  10. Michael R. Pakko, 2003. "Substitution elasticities and investment dynamics in two country business cycle models," Working Papers, Federal Reserve Bank of St. Louis 2002-030, Federal Reserve Bank of St. Louis.
  11. Matheron, Julien, 2003. "Is growth useful in RBC models?," Economic Modelling, Elsevier, Elsevier, vol. 20(3), pages 605-622, May.
  12. Baxter, Marianne & Farr, Dorsey D., 2005. "Variable capital utilization and international business cycles," Journal of International Economics, Elsevier, Elsevier, vol. 65(2), pages 335-347, March.

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