Real Business Cycles in Emerging Countries
By J. García-Cicco, Roberto Pancrazi, Martin Uribe. 2010
540 citations recorded by the source corpus.
We use more than a century of Argentine and Mexican data to estimate the structural parameters of a small-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job of explaining business cycles in emerging countries. We then estimate an augmented model that incorporates shocks to the country premium and financial frictions. We find that the estimated financial-friction model provides a remarkably good account of business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks. (JEL E13, E32, E44, F43, O11, O16)
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/60302bd7477a10c5c9302234134561be76d2dbc3
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
In Finance
Citations in the corpus
- Policy Risk and the Business Cycle (2014, result): “This is in line with an increasing number of studies from the fiscal policy (Monacelli and Perotti, 2008), open economy (Chang and Fernández, 2010; Garcia-Cicco et al., 2010), and news literature (Jaimovich and Rebelo, 2009; Schmitt-Grohé and Uribe, 2008), which also suggest the presence of a low we”
- Commodity Booms and Busts in Emerging Economies (2017, unknown): “8 Estimate of Garćıa-Cicco et al. (2010) αk 0.32 Garćıa-Cicco et al. (2010) αm 0.05 Shousha (2016) α̃k 0.32 Impose equal capital share across both sectors δ 0.1255 Garćıa-Cicco et al. (2010) φ 6 Roughly match impact responses in SVAR β 0.”
- Informal Employment and Business Cycles in Emerging Economies: The Case of Mexico (2015, unknown): “To do this we use a dataset of five alternative measures of informal employment 2See the works by Neumeyer and Perri (2005), Uribe and Yue (2006), Aguiar and Gopinath (2007), Mendoza (2010), García-Cicco et al. (2010), Chang and Fernández (2013) and Fernández and Gulan (2014), among others.”
- Downward Nominal Wage Rigidity, Currency Pegs, and Involuntary Unemployment (2016, unknown): “07 percent per year, to match the average growth rate of Argentine per capita real GDP over the period 1900-2005 reported in Garćıa-Cicco et al. (2010). The adjusted value of γ is then given by 1.”
- Debt Dilution and Sovereign Default Risk (2011, unknown): “Garćıa-Cicco et al. (2010) and AlvarezParra et al.”