International macroeconomics provides students with an analytically rigorous introduction to the impact of globalization on macroeconomics. Fisher and neil vousden 7 substitutability of capital, investment costs, and foreign aid 8. Papers are welcomed from all areas of macroeconomics and from all parts of the world. May 2005 preliminary abstract this paper studies the dynamic properties of international house prices, stock prices, interest rates and macroeconomic aggregates in. Stock and watson changes in international business cycle dynamics 971 figure 1. We use cookies to distinguish you from other users and to provide you with a better experience on our websites.
International macroeconomic dynamics department of. For a long time, the study of macroeconomics has focused almost exclusively on a closed economy and downplayed the role of international transactions. Close this message to accept cookies or find out how to manage your cookie settings. Productivity differs across individual, monopolistically competitive. A clear, self contained, introduction to the structure of macroeconomic models and the tools of macroeconomics. We show that the microeconomic features of our model have important consequences for macroeconomic variables. The entire manuscript including notes and references should be produced as double spaced typescript on 8 12 x 11inch or a4 white paper. Financial intermediation, asset prices, and macroeconomic. Exogenous shocks to aggregate productivity and entry or trade costs.
Baldwin and lyons 1994 and dumas 1992 are two notable exceptions. Melitz we develop a stochastic, general equilibrium, twocountry model of trade and macroeconomic dynamics. Accounting for automation and offshoring in international. Boragan, pablo cubaborda and frank schorfheide 2016. Presents an analytically rigorous introduction to the field and uniquely includes optional econometric studies provides a unified macroeconomic model to examine rigorously international macroeconomics and then focuses this model on historic cases. A quick glance at the disciplines leading journals reveals that virtually the entire academic profession has turned to interpreting macroeconomic data with models that are based. We also explore the extent to which the intermediary variables that. Melitz harvard university cepr and nber october 15, 2003 preliminary comments welcome abstract we develop a stochastic, general equilibrium, twocountry model of trade and macroeconomic dynamics. Figure 1 plots the fourquarter growth rate of per capita gdp for each country. Firms face a sunk entry cost in the domestic market and both fixed and perunit export costs. Understanding changes in international business cycle.
International trade and macroeconomic dynamics with heterogeneous firms. Natural expectations, macroeconomic dynamics, and asset. Major advances in macroeconomics without immediate policy applications will also be accepted, if they show potential for application in the future. University of virginia international monetary fund first version. Skip to main content accessibility help we use cookies to distinguish you from other users and to provide you with a better experience on our websites. Today, however, researchers recognize that one cannot fully understand domestic macroeconomic. Accounting for automation and offshoring in international macroeconomic and employment dynamics federico s. International trade and macroeconomic dynamics with heterogeneous firms fabio ghironi, marc j. In a dynamic macroeconomic model both individuals and. Economic fluctuations and growth, international finance and macroeconomics, international trade and investment. Examples include peek and rosengren 2000, schnabl 2010, as well as puri, rocholl, and ste. There is only one global public good, but groups have heterogeneous valuations. We develop a stochastic, general equilibrium, twocountry model of trade and macroeconomic dynamics. Boragan, pablo cubaborda and frank schorfheide international finance discussion papers board of governors of the federal reserv e system number 1163 may 2016 please cite paper as.
International trade and macroeconomic dynamics with heterogenous firms article pdf available in quarterly journal of economics 1203. Download pdf methodsofmacroeconomicdynamics free online. This course focuses on the intersection of international trade and macroeconomics. We present evidence that comovements in macroeconomic variables do not concern only real activity, but are an important feature also of stock market returns, in. The model is estimated with employment data for different skills groups and tradeweighted macroeconomic indicators. If the address matches an existing account you will receive an email with instructions to retrieve your username. Dsge model of international trade and macroeconomics. A factor vector autoregressive approach in this paper international comovements among a set of key real and nominal macroeconomic variables in. Labor market polarization and international macroeconomic.
The long term growth rate of gdp is not constant for some of these. International macroeconomic dynamics pdf free download epdf. May 2005 preliminary abstract this paper studies the dynamic properties of international house prices, stock prices, interest rates and macroeconomic aggregates in industrial countries. Fabio ghironi boston college european university institute and eabcn marc j.
Our results provide support to the hypothesis that financial intermediary balance sheet quantities matter in the determination of risk premia. Mandelman federal reserve bank of atlanta february 2017 abstract employment in middleskill occupations witnessed an outright decline in the us during the last three decades. Natural expectations, macroeconomic dynamics, and asset pricing the harvard community has made this article openly available. Macroeconomic dynamics publishes theoretical, empirical or quantitative research of the highest standard. International trade and macroeconomic dynamics with heterogeneous firms,quarterly journal of economics 120.
In this paper international comovements among a set of key real and nominal macroeconomic variables in the us, uk, canada, japan and the euro area have been investigated for the 19802005 period, using a factor vector autoregressive approach. In this paper international comovements among a set of key real and nominal macroeconomic variables for the g7 countries have been investigated for the 1980 2005 period, using a factor vector autoregressive approach. International trade and macroeconomic dynamics with labor. House prices, interest rates and macroeconomic fluctuations. Vertical linkages, international trade, and macroeconomic dynamics dissertation. International macroeconomic dynamics turnovsky, stephen j. Vertical linkages, international trade, and macroeconomic. Next time my students ask me how to setup a model for the dynamic effects of fiscal policy in a twosector economy, or how they should think about introducing uncertainty in an endogenous growth model, i will tell them to start with turnovskys book. Macroeconomic dynamics in a model of goods, labor and credit. Macroeconomic dynamics time inconsistency a macroeconomic model individuals maximize the objective function. Your story matters citation fuster, andreas, benjamin hebert, and david laibson. As job opportunities in middleskill occupations disappeared, employment. Formal models of international macroeconomic dynamics do not usually address or incorporate the determinants and evolu tion of trade patterns. Melitz harvard university cepr and nber first draft.
It adopts the main contemporary macroeconomic framework, the representative agent model, and develops a series of models of increasing complexity. In this paper i make the following ten remarks on the topics of exchange rate policy, capital ow management, protectionism, and global cooperation. We document that financial intermediary balance sheet aggregates contain strong predictive power for excess returns on a broad set of equity, corporate, and treasury bond portfolios. Several papers have recently investigated the existence and importance of common patterns in the international dynamics of macroeconomic variables, with a focus on the changes over time of business cycle synchronization among the major economies due to common global disturbances. Pdf international trade and macroeconomic dynamics with. Beyond the mundellfleming model maurice obstfeld this paper presents a broad overview of postwar analytical thinking on international macroeconomics, culminating in a more detailed discussion of very recent progress.
Vertical linkages, international trade, and macroeconomic dynamics dissertation zurerlangungdesdoktorgrades derwirtschaftsundsozialwissenschaftlichenfakultat. Productivity differs across individual, monopolistically competitive firms in each country. International macroeconomic dynamics provides extensive applications of important macroeconomic dynamic models to the international economy. International macroeconomic dynamics the mit press. Dynamic issues in international economics 6 dynamic trade creation 115 eric on. March 15, 2004 comments welcome abstract we develop a stochastic, general equilibrium, twocountry model of. May 23, 2004 comments welcome abstract we develop a stochastic, general equilibrium, twocountry model of trade and macroeconomic dynamics. Rethinking international macroeconomic policy gita gopinath harvard and nber october 25, 2017 abstract. July 31, 2019 chapters 1216 are preliminary and incomplete. A new international macroeconomic model tamim bayoumi with assistance from douglas laxton,hamid faruqee,benjamin hunt, philippe karam,jaewoo lee,alessandro rebucci,and ivan tchakarov 239 international monetary fund washington dc 2004 239 gem a new international macroeconomic model.
The international macroeconomic data set provides data from 1969 through 2030 for real adjusted for inflation gross domestic product gdp, population, real exchange rates, and other variables for the 190 countries and 34 regions that are most important for u. And dynamics 4 delinearizing the neoclassical convergence model 83 steve dowrick 5 bifurcations in macroeconomic models 95 william a. International trade and macroeconomic dynamics with labor market frictions matteo cacciatorey hec montroal february 2012 abstract this paper studies how labor market frictions a. Trade flow dynamics with heterogeneous firms, american. Economic fluctuations and growth, international finance and macroeconomics, international trade and investment we develop a stochastic, general equilibrium, twocountry model of trade and macroeconomic dynamics. International trade and macroeconomic dynamics with. Its purpose is to expose students to recent developments in this research area, to develop understanding of the interaction of micro and macro dynamics in international interdependence, and to stimulate ideas for dissertation research. Labor market polarization and international macroeconomic dynamics federico s. International macroeconomic fluctuations volume 19 issue 7 soyoung kim, jaewoo lee. In equilibrium, individual and aggregate dynamics must be consistent. I show that the domestic and international aggregate shocks estimated within this framework can rationalize such employment dynamics while providing a good fit to the macroeconomic data. Natural expectations, macroeconomic dynamics, and asset pricing.