Business cycles in emerging economies
Subtitle: the role of interest rates
By: Pablo A. Neumeyer, Fabrizio Perri.
Contributors: Perri, Fabrizio.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10387; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10387.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Business cycles -- Developing countries -- Econometric models.; Interest rates -- Developing countries -- Econometric models.
Description: "We find that in a sample of emerging economies business cycles are more volatile than in developed ones, real interest rates are countercyclical and lead the cycle, consumption is more volatile than output and net exports are strongly countercyclical.  We present a model of a small open economy, where the real interest rate is decomposed in an international rate and a country risk component.  Country risk is affected by fundamental shocks but, through the presence of working capital, also amplifies the effects of those shocks.  The model generates business cycles consistent with Argentine data.  Eliminating country risk lowers Argentine output volatility by 27% while stabilizing international rates lowers it by less than 3%"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 1/14/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.