A note on the volatility of the tradeable and nontradeable sectors

Povoledo, L. (2012) A note on the volatility of the tradeable and nontradeable sectors. Macroeconomic Dynamics. ISSN 1365-1005

[img]
Preview
PDF - Accepted Version
185kB

Publisher's URL: http://dx.doi.org/10.1017/S1365100511000782

Abstract

This note evaluates whether a "New Open Economy" model can reproduce qualitatively the observed fluctuations of the tradeable and nontradeable sectors of the US economy. The answer is positive: both in the model and in the data the standard deviations of tradeable inflation, output and employment are significantly higher than the standard deviations of the corresponding nontradeable sector variables. The key role in generating this result is played by the greater responsiveness of tradeable sector variables to monetary shocks.

Item Type:Article
Uncontrolled Keywords:new open economy macroeconomics, tradeable and nontradeable sectors, business cycles
Faculty/Department:Faculty of Business and Law > Department of Accounting, Economics and Finance
ID Code:16660
Deposited By: Dr L. Povoledo
Deposited On:23 Apr 2012 10:50
Last Modified:06 Mar 2013 11:26

Request a change to this item

Total Document Downloads in Past 12 Months

Document Downloads

Total Document Downloads

More statistics for this item...
Copyright 2013 © UWE better together