A Small Open Economy in Depression: Lessons from Canada in the 1930s

Caroline Betts, Michael Bordo and Angela Redish

No 4515, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper tests the hypothesis that idiosyncratic U.S. disturbances and their international propagation can account for the global Depression. Exploiting common stochastic trends in U.S. and Canadian interwar data, we estimate a small open economy model for Canada that decomposes output fluctuations into sources identifiable with world and country-specific disturbances. We find that the onset, depth and duration of output collapse in both Canada and the U.S. are primarily attributable to a common, permanent output shock leaving little significant role for idiosyncratic disturbances originating in either economy.

JEL-codes: E32 N12 (search for similar items in EconPapers)
Date: 1993-11
Note: ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as Canadian Journal of Economics, vol. XXIX, no. 1, pp. 1-36, February 1996.

Downloads: (external link)
http://www.nber.org/papers/w4515.pdf (application/pdf)

Related works:
Journal Article: A Small Open Economy in Depression: Lessons from Canada in the 1930s (1996)
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:nbr:nberwo:4515

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w4515

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().