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Wealth effects and countercyclical net exports


Dmitriev, A and Roberts, I, Wealth effects and countercyclical net exports, Applied Economics Letters, 19, (17) pp. 1673-1677. ISSN 1350-4851 (2012) [Refereed Article]

Copyright Statement

Copyright 2012 Taylor & Francis

DOI: doi:10.1080/13504851.2012.665588


Two-country, one-good business cycle models with Cobb–Douglas preferences predict procyclical net exports. The opposite is observed in the data. We show that introduction of preferences that eliminate wealth effects on labour supply remedies this discrepancy. It also improves the model’s ability in matching cross-country correlations.

Item Details

Item Type:Refereed Article
Keywords:wealth effects, GHH preferences, International Business Cycles
Research Division:Economics
Research Group:Applied economics
Research Field:Macroeconomics (incl. monetary and fiscal theory)
Objective Division:Economic Framework
Objective Group:Macroeconomics
Objective Field:Macro labour market issues
UTAS Author:Dmitriev, A (Dr Alexandre Dmitriev)
ID Code:83255
Year Published:2012
Deposited By:Economics and Finance
Deposited On:2013-03-06
Last Modified:2014-10-10

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