Interlinkage in the Endogenous Real Business Cycles of International Economies

Kazuo Nishimura and Makoto Yano

Economic Theory, 1993, vol. 3, issue 1, 68 pages

Abstract: This study investigates interlinkage among the business cycles of countries from the viewpoint of endogenous real business cycles. For this purpose, we build a simple perfect foresight equilibrium model with two countries and characterize the global dynamics of a free-trade equilibrium as well as that of each country's autarky equilibrium by means of the fundamental structure of an economy.

Date: 1993
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