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La marge extensive, les parts des secteurs et les cycles d’affaires internationaux .
Author(s) -
Devereux Michael B.,
Hnatkovska Viktoria
Publication year - 2012
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2012.01707.x
Subject(s) - business cycle , margin (machine learning) , economics , aggregate (composite) , econometrics , consumption (sociology) , international business , measure (data warehouse) , aggregate data , national accounts , macroeconomics , monetary economics , statistics , computer science , social science , materials science , mathematics , management , database , sociology , composite material , machine learning
This paper documents some previously neglected features of sectoral shares at business cycle frequencies in OECD economies. We find that the non‐traded output share is as volatile as aggregate GDP and for most countries is countercyclical. While the standard international real business cycle model has difficulty in accounting for these properties of the data, an extended model that allows for sectoral adjustment along both the intensive and the extensive margins does a much better job of replicating these statistics. The model also matches better the correlation between relative consumption growth and real exchange rate changes, a key measure of international risk‐sharing.