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International Real Business Cycles

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  • Mario J. Crucini

    (Department of Economics, Vanderbilt University)

Abstract

This paper is a non-technical review of research developments in the international real business cycle literature. International business cycle facts are summarize with particular attention to the sources of output variance from the expenditure side of the NIPA and the production side, using a familiar neoclassical production function. Theoretical developments focus on the how consumption smoothing and investment dynamics shape the current account; the search for sources and propagation mechanisms of international business cycle comovement and key facets of relative price determination (the real exchange rate and the terms of trade).

Suggested Citation

  • Mario J. Crucini, 2006. "International Real Business Cycles," Vanderbilt University Department of Economics Working Papers 0617, Vanderbilt University Department of Economics.
    • Handle: RePEc:van:wpaper:0617
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    References listed on IDEAS

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    Cited by:

    1. Giancarlo Corsetti & Luca Dedola & Francesca Viani, 2012. "The international risk sharing puzzle is at business cycle and lower frequency," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 45(2), pages 448-471, May.
    2. Yilmazkuday, Hakan, 2012. "Business cycles through international shocks: A structural investigation," Economics Letters, Elsevier, vol. 115(3), pages 329-333.
    3. Priyo, Asad Karim Khan, 2009. "Impact of the Exchange Rate Regime Change on the Value of Bangladesh Currency," MPRA Paper 117987, University Library of Munich, Germany.
    4. Nicolas Petrosky-Nadeau, "undated". "Endogenous Flows of Foreign Direct Investment and International Real Business Cycles," GSIA Working Papers 2011-E16, Carnegie Mellon University, Tepper School of Business.
    5. Bjarni G. Einarsson & Gudjón Emilsson & Svava J. Haraldsdóttir & Thórarinn G. Pétursson & Rósa B. Sveinsdóttir, 2013. "On our own? The Icelandic business cycle in an international context," Economics wp63, Department of Economics, Central bank of Iceland.
    6. Jiang, Mingming, 2016. "By force of demand: Explaining cyclical fluctuations of international trade and government spending," Journal of Economic Dynamics and Control, Elsevier, vol. 69(C), pages 249-267.

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    More about this item

    Keywords

    International business cycles; current account; real exchange rates;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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