dc.contributor.author | Bergholt, Drago | |
dc.contributor.author | Sveen, Tommy | |
dc.date.accessioned | 2018-04-25T12:59:48Z | |
dc.date.available | 2018-04-25T12:59:48Z | |
dc.date.issued | 2014 | |
dc.identifier.isbn | 978-82-7553-800-8 | |
dc.identifier.issn | 1502-8143 | |
dc.identifier.uri | http://hdl.handle.net/11250/2495981 | |
dc.description.abstract | Existing DSGE models are not able to reproduce the observed influence of international business cycles on small open economies. We construct a two-sector New Keynesian model to address this puzzle. The set-up takes into account intermediate trade and producer heterogeneity, where goods and service industries differ in terms of i) price flexibility, ii) trade intensity, iii) technology, iv) I-O structure, and v) the volatility of productivity innovations. The combination of intermediate markets and heterogeneous producers makes international business cycles highly important for the small economy, even if it has a large service sector. Exploiting I-O matrices of Canadian and US industries, the model is able to reproduce the role of international disturbances typically found in empirical studies. Model simulations deliver cross-country correlations in macroeconomic variables of about 0:7, with half of the variation in domestic variables attributed to foreign shocks. | nb_NO |
dc.language.iso | eng | nb_NO |
dc.publisher | Norges Bank | nb_NO |
dc.relation.ispartofseries | Working Papers;4/2014 | |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.subject | JEL: E32 | nb_NO |
dc.subject | JEL: F41 | nb_NO |
dc.subject | JEL: F44 | nb_NO |
dc.subject | small open economy | nb_NO |
dc.subject | multi-sector | nb_NO |
dc.subject | intermediate trade | nb_NO |
dc.subject | international business cycles | nb_NO |
dc.title | Sectoral Interdependence and Business Cycle Synchronization in Small Open Economies | nb_NO |
dc.type | Working paper | nb_NO |
dc.description.version | publishedVersion | nb_NO |
dc.subject.nsi | VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 | nb_NO |
dc.source.pagenumber | 26 | nb_NO |