Business Cycles in Emerging Markets : the Role of Durable Goods and Financial Frictions.

Business Cycles in Emerging Markets : the Role of Durable Goods and Financial Frictions.

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Bibliographic Details
Corporate author / creator:International Monetary Fund.
Imprint:Washington, D.C. : International Monetary Fund, 2011.
Description:1 online resource (38 pages)
Language:English
Series:IMF Working Papers, 2227-8885 ; Working Paper No. 11/133
IMF Working Papers ; Working Paper no. 11/133.
Subject:
Business cycles -- Developing countries -- Econometric models.
Consumer goods -- Developing countries -- Econometric models.
Business cycles -- Econometric models.
Developing countries.
Electronic books.
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12508116
Hidden Bibliographic Details
Other authors / contributors:International Monetary Fund.
ISBN:1462335454
9781462335459
Notes:Available in PDF, ePUB, and Mobi formats on the Internet.
Summary:This paper examines how durable goods and financial frictions shape the business cycle of a small open economy subject to shocks to trend and transitory shocks. In the data, nondurable consumption is not as volatile as income for both developed and emerging market economies. The simulation of the model implies that shocks to trend play a less important role than previously documented. Financial frictions improve the ability of the model to match some key business cycle properties of emerging economies. A countercyclical borrowing premium interacts with the nature of durable goods delivering highly volatile consumption and very countercyclical net exports.
Standard no.:10.5089/9781462335459.001

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