The common sources of business cycles in Trans-Pacific countries and the U.S.? A comparison with NAFTA
Uluc Aysun () and
Takeshi Yagihashi ()
No 2017-03, Working Papers from University of Central Florida, Department of Economics
This paper uses both a nonstructural and a structural analysis to investigate the drivers of the business cycles in the US and 15 Trans-Pacific (TP) countries. Our nonstructural approach, based on a principal component methodology, helps us measure the share of the variation in macroeconomic variables that is explained by factors that are common to both the US and the TP region. We carry out a similar exercise after estimating a large scale, two country dynamic stochastic general equilibrium model that allows for common and correlated shocks across the two regions. The clear and common finding from our analyses is that common shocks explain a substantial amount of macroeconomic variation. Comparison with the NAFTA region, along this dimension, reveals that the US economy is more similar to the TP region than it is with Mexico and Canada.
Keywords: Principal component analysis; DSGE; Bayesian estimation; Trans-Pacific; NAFTA (search for similar items in EconPapers)
JEL-codes: E32 F15 F42 F44 (search for similar items in EconPapers)
Pages: 57 Pages
New Economics Papers: this item is included in nep-dge, nep-ias and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://economics.itweb.ucf.edu/workingpapers/2017-03.pdf Full text (application/pdf)
Journal Article: The common sources of business cycles in Trans‐Pacific countries and the US? A comparison with NAFTA (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cfl:wpaper:2017-03
Access Statistics for this paper
More papers in Working Papers from University of Central Florida, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by John Paul ().