Since the primary role of international financial linkages is to facilitate consumption smoothing in face country-specific shocks, degree integration should play an important transmission business cycles. This paper therefore studies cycle implications restricting trade assets. The key restriction that domestic residents must hold all risky claims output, trading only noncontingent bonds on asset markets. We find may or not change model relative complete markets, depending parameterization...

We study good-by-good deviations from the Law-of-One-Price (LOP) for over 1,800 retail goods and services between all European Union (EU) countries years 1975, 1980, 1985, 1990. find that each of these years, after we control differences in income value-added tax (VAT) rates, there are roughly as many overpriced underpriced any two EU countries. also measures cross-sectional price dispersion negatively related to tradeability good, positively share non-traded inputs required produce good....

This paper contributes to the empirical literature that tests implications of risk sharing across regions or countries. Rather than test null full insurance, estimation method produces a parameter measures fraction annuity value individual income individuals different (or nations) pool. Comparing provinces Canada, states United States, and G-7 countries, I find similar degrees within Canada U.S. exceed occurs Specifically, more two-thirds fitted annual variation in regional consumption is...

We argue against the prevailing view that macroeconomic role of tariffs during Great Depression was small. To understand economic channels through which could have large effects we build a multi-sector dynamic equilibrium trade model captures key features in 1930s: A substantial share material inputs, and persistence tariff increases had potential for significant on capital accumulation. Both these are important generating conclusion that, even when only represents small output, can impact...

Since the primary role of international financial linkages is to facilitate consumption smoothing in face country-specific shocks, degree integration should play an important transmission business cycles. This paper therefore studies cycle implications restricting trade assets. The key restriction that domestic residents must hold all risky claims output, trading only noncontingent bonds on asset markets. We find may or not change model relative complete markets, depending parameterization...

We build a single‐country, two‐city, model with nominal rigidities and transport costs which predicts that variation of LOP deviations is lower for goods infrequent price adjustment after controlling distance. adapt the Engel Rogers (1996) regression to analyse Japanese retail prices at city level find results are consistent theoretical predictions. The also suggest distance equivalent can be as large 'width' border found in literature on international LOP, casting doubt casual...

On combining national terms‐of‐trade data for developing countries with world prices of internationally traded primary commodities, it is found that variation in the three or fewer key exported commodities account 50% more annual terms trade a typical country. A considerable fraction specific to particular commodity and, given overall importance differs across countries, possible much heterogeneity them. It concluded price fluctuations should be central features two related literatures:...

We investigate how increases in publication delays have affected the life cycle of publications recent Ph.D. graduates economics. construct a panel dataset 14,271 individuals who were awarded Ph.D.s between 1986 and 2000 U.S. Canadian economics departments. For this population scholars, we amass complete records peer‐reviewed journals listed JEL (a total 368,672 observations). find evidence significantly diminished productivity relative to earlier cohorts when an individual is measured by...

This paper investigates the character of business cycles across large and small economies. Empirically, G‐7 countries have less volatile investment, consumption, trade balance ratios, higher correlations between domestic sacing investment rates, about same correlation trade‐balance ratio as 68 smaller countries. These observations are consistent with a standard one‐sector two‐country general equilibrium model in which only source heterogeneity is country size. Since many developing small,...

This paper reviews three important issues in the literature on international and intranational risk sharing. First, we establish a comprehensive set of stylized facts for consumption sharing within across countries. Consistent with findings literature, find that correlation our consumtion measure countries is much less than output. As pointed to by Backus, Kehoe Kydland (1993), this constitutes violation complete sharing, which they labeled ?quantity anomaly?. The using data are contrasted...

We provide a series of variance decompositions based on panel data set international goods prices. The spans 301 and services across 123 cities from 78 countries over the years 1990-2015. analyze good-by-good deviations Law One Price (LOP) for all bilateral city pairs time periods. Our main finding is that variation within LOP distribution large relative to how itself moves time. More specifically, we find (i) long term account just as much overall price does around deviations, (ii) cross...