Abstract
We established a comprehensive set of stylized facts for intranational business cycles across states and regions in the U.S. Notable findings are that the cross correlations of our consumption measure is much less than that for output, and the volatility of the real exchange rate between states is much less than that for output. These findings are contrasted with the quantity and price "anomalies" found in international business cycle data. Additional results for labour and non-labour earnings suggest that the observed amount of intratemporal risk sharing is quite limited as compared to that for intertemporal risk sharing.
Original language | English |
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Pages (from-to) | 289-313 |
Number of pages | 25 |
Journal | Journal of International Economics |
Volume | 44 |
Issue number | 2 |
DOIs | |
Publication status | Published - 1998 Apr 1 |
Externally published | Yes |
Keywords
- Open Economy RBC models
- Price and quantity anomalies
- Risk sharing
ASJC Scopus subject areas
- Finance
- Economics and Econometrics