Financial frictions and business cycles in middle-income countries

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dc.contributor.authorGuajardo M., Jaime
dc.date.accessioned2019-11-01T00:03:58Z
dc.date.available2019-11-01T00:03:58Z
dc.date.issued2008
dc.descriptionEmpirical analysis reveals three regularities among middleincome countries: consumption is highly procyclical and more volatile than output, investment is highly procyclical and three to four times as volatile as output, and real net exports are countercyclical and about three times as volatile as output. Standard dynamic stochastic general equilibrium (DSGE) small open economy models have failed to match these regularities, as they predict excessive consumption smoothing, low procyclicality and volatility of investment, and procyclical real net exports. Some studies tackle these problems by increasing the persistence of shocks (Aguiar and Gopinath, 2004 and in this volume) or by lowering the intertemporal elasticity of substitution, as when using the preferences introduced by Greenwood, Hercowitz, and Hoffman (1988) (Mendoza, 1995, 2001, Neumeyer and Perri, 2005).
dc.file.nameBCCh-sbc-v12-p279_344
dc.format.pdf
dc.format.extentSección o Parte de un Documento
dc.format.mediump. 279-344
dc.identifier.isbn978-956-7421-30-5
dc.identifier.urihttps://hdl.handle.net/20.500.12580/3738
dc.language.isoeng
dc.publisherBanco Central de Chile
dc.relation.ispartofSeries on Central Banking, Analysis, and Economic Policies, no. 12
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 Chile*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/cl/*
dc.subjectCICLOS ECONÓMICOSes_ES
dc.subjectMODELOS ESTOCÁSTICOSes_ES
dc.titleFinancial frictions and business cycles in middle-income countries
dc.type.docArtículo

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