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| dc.title | World Shocks, World Prices, and Business Cycles : An Empirical Investigation |
| dc.contributor.author | Fernandez, Andres |
| dc.contributor.author | Schmitt-Grohé, Stephanie |
| dc.contributor.author | Uribe, Martin |
| dc.contributor.orgunit | Department of Research and Chief Economist |
| dc.date.available | 2017-06-15T00:00:00 |
| dc.date.issue | 2017-06-09T00:00:00 |
| dc.description.abstract | SVAR models that include a single world price (such as the terms-of-trade) predict that world shocks explain a small fraction of movements in domestic output (typically less than 10 percent). This paper presents an empirical framework in which multiple commodity prices transmit world disturbances. Estimates on a panel of 138 countries over the period 1960-2015 indicate that world shocks explain on average 33 percent of output fluctuations in individual economies. This figure doubles when the model is estimated on post-2000 data. The findings reported here suggest that one-world-price specifications significantly underestimate the importance of world shocks for domestic business cycles. |
| dc.format.extent | 33 |
| dc.identifier.doi | http://dx.doi.org/10.18235/0000721 |
| dc.identifier.url | https://publications.iadb.org/publications/english/document/World-Shocks-World-Prices-and-Business-Cycles--An-Empirical-Investigation.pdf |
| dc.language.iso | en |
| dc.medium | Adobe PDF |
| dc.publisher | Inter-American Development Bank |
| dc.subject | Monetary Policy |
| dc.subject | Production and Business Cycle |
| dc.subject.keywords | World prices |
| dc.type | Working Papers |
| idb.identifier.pubnumber | Working Papers |
| idb.operation | RG-K1098 |