The volatility of consumption and output with increasing industrialization
Consumption is more volatile than output in developing countries while it is less volatile than output in developed economies. This paper shows that the relatively large home sector in developing economies contributes to this difference, and the driving force for this difference is technology. Thus this paper suggests that volatile market consumption is almost inevitable at the start of industrialization, when the technology level in the market sector is just above that of the home sector.
|Date of creation:||16 Oct 2010|
|Date of revision:||17 Aug 2011|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Paul Gomme & Peter Rupert, 2005.
"Theory, measurement, and calibration of macroeconomic models,"
0505, Federal Reserve Bank of Cleveland.
- Gomme, Paul & Rupert, Peter, 2007. "Theory, measurement and calibration of macroeconomic models," Journal of Monetary Economics, Elsevier, vol. 54(2), pages 460-497, March.
- David K. Backus & Patrick J. Kehoe & Finn E. Kydland, 1991.
"International real business cycles,"
146, Federal Reserve Bank of Minneapolis.
- Paul Gomme & Finn E. Kydland & Peter Rupert, 2001.
"Home Production Meets Time to Build,"
Journal of Political Economy,
University of Chicago Press, vol. 109(5), pages 1115-1131, October.
- Mark Aguiar & Gita Gopinath, 2004.
"Emerging market business cycles: the cycle is the trend,"
04-4, Federal Reserve Bank of Boston.
- Mark Aguiar & Gita Gopinath, 2007. "Emerging Market Business Cycles: The Cycle Is the Trend," Journal of Political Economy, University of Chicago Press, vol. 115, pages 69-102.
- Mark Aguiar & Gita Gopinath, 2004. "Emerging Market Business Cycles: The Cycle is the Trend," NBER Working Papers 10734, National Bureau of Economic Research, Inc.
- Aguiar, Mark & Gopinath, Gita, 2007. "Emerging Market Business Cycles: The Cycle is the Trend," Scholarly Articles 11988098, Harvard University Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33721. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.