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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. Dang, Jing & Gillman, Max & Kejak, Michal, 2011. "Real Business Cycles with a Human Capital Investment Sector and Endogenous Growth: Persistence, Volatility and Labor Puzzles," Cardiff Economics Working Papers E2011/8, Cardiff University, Cardiff Business School, Economics Section.
  2. Michael R. Pakko, 2003. "Substitution elasticities and investment dynamics in two country business cycle models," Working Papers 2002-030, Federal Reserve Bank of St. Louis.
  3. 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.
  4. Cuñat, Alejandro & Maffezzoli, Marco, 2002. "Heckscher-Ohlin Business Cycles," CEPR Discussion Papers 3382, C.E.P.R. Discussion Papers.
  5. Pakko, Michael R., 2004. "A spectral analysis of the cross-country consumption correlation puzzle," Economics Letters, Elsevier, vol. 84(3), pages 341-347, September.
  6. Boileau, Martin, 2002. "Trade in capital goods and investment-specific technical change," Journal of Economic Dynamics and Control, Elsevier, vol. 26(6), pages 963-984, June.
  7. Paccagnini, Alessia, 2010. "DSGE Model Validation in a Bayesian Framework: an Assessment," MPRA Paper 24509, University Library of Munich, Germany.
  8. Baxter, Marianne & Farr, Dorsey D., 2005. "Variable capital utilization and international business cycles," Journal of International Economics, Elsevier, vol. 65(2), pages 335-347, March.
  9. Matheron, Julien, 2003. "Is growth useful in RBC models?," Economic Modelling, Elsevier, vol. 20(3), pages 605-622, May.

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