Real Business Cycles in Emerging Countries: The Role of Nonlinearity

2020 ◽  
Author(s):  
Sanha Noh ◽  
INGUL BAEK
Keyword(s):  
Business Cycles ◽  
Emerging Countries ◽  
Real Business Cycles

scholarly journals Real Business Cycles in Emerging Countries?

2006 ◽  
Author(s):  
Javier García-Cicco ◽  
Roberto Pancrazi ◽  
Martín Uribe
Keyword(s):  
Business Cycles ◽  
Emerging Countries ◽  
Real Business Cycles

scholarly journals Real Business Cycles in Emerging Countries?

2010 ◽  
Vol 100 (5) ◽  
pp. 2510-2531 ◽  
Author(s):  
Javier García-Cicco ◽  
Roberto Pancrazi ◽  
Martín Uribe
Keyword(s):  
Business Cycles ◽  
Open Economy ◽  
Structural Parameters ◽  
Small Open Economy ◽  
Emerging Countries ◽  
Friction Model ◽  
Financial Friction ◽  
Productivity Shocks ◽  
Real Business Cycles ◽  
Business Cycle Model

We use more than a century of Argentine and Mexican data to estimate the structural parameters of a small-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job of explaining business cycles in emerging countries. We then estimate an augmented model that incorporates shocks to the country premium and financial frictions. We find that the estimated financial-friction model provides a remarkably good account of business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks. (JEL E13, E32, E44, F43, O11, O16)

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