ENDOGENOUS FLUCTUATIONS IN TWO-COUNTRY MODELS

Alain Venditti, Kazuo Nishimura and Makoto Yano

Post-Print from HAL

Abstract: This paper investigates the interlinkage in the business cycles of large-country economies in a free-trade equilibrium. We consider a two-country, two-good, two-factor general equilibrium model with Cobb-Douglas technologies and linear preferences. We also assume decreasing returns to scale in the consumption good sector. We first identify the determinants of each country's global accumulation pattern in autarky equilibrium, and secondly we show how a country's business cycles may spread throughout the world once trade opens. We thus give capital intensity conditions for local and global stability of competitive equilibrium paths.

Keywords: Two-country general equilibrium model; endogenous fluctuations; capital intensities; decreasing returns} (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Published in The Japanese Economic Review, 2006, 57 (4), pp.516-532

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: ENDOGENOUS FLUCTUATIONS IN TWO‐COUNTRY MODELS* (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00280015

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().