2024-03-29T13:11:15Zhttps://repositorio.bde.es/oai/requestoai:repositorio.bde.es:123456789/69162023-06-08T12:31:04Zcom_123456789_5661com_123456789_21col_123456789_5690
Repositorio Institucional
author
Canals, Claudia
author
Gabaix, Xavier
author
Vilarrubia Tapia, Josep M.
author
Weinstein, David E.
2019-08-10T17:50:13Z
2019-08-10T17:50:13Z
2007-07-12
ISSN: 0213-2710 (en papel)
https://repositorio.bde.es/handle/123456789/6916
000191030
DTRA-200721-eng
International Macroeconomics has long sought an explanation for current account fluctuations that matches the data. The approaches have typically focused on better models and new macroeconomic variables. We demonstrate the limitations of this approach by showing that idiosyncratic shocks are an important cause of macroeconomic volatility even for large countries. When explaining these fluctuations, standard macroeconomic models generally assume that firms are small and that their microeconomic shocks cancel out. We show that the high degree of concentration of bilateral trade flows means that idiosyncratic shocks can have a significant impact on aggregate economic fluctuations. We theoretically develop a descomposition components. Taking the model to data on bilateral trade flows from 1970 to 1997, we find that the most comprehensive macroeconomic model can only account for at most half of the observed variance in trade account volumes of each country. Thus, this paper highlights the importance of considering disaggregated data when modeling the current account
eng
Reconocimiento-NoComercial-CompartirIgual 4.0 Internacional (CC BY-NC-SA 4.0)
Trade balance
Trade concentration
Firms
Empirical
Trade patterns, trade balances and idiosyncratic shocks
Documento de trabajo
URL
https://repositorio.bde.es/bitstream/123456789/6916/1/dt0721e.pdf
File
MD5
7ff9b23163c30783a65760bb90e8ebe5
744387
application/pdf
dt0721e.pdf
URL
https://repositorio.bde.es/bitstream/123456789/6916/2/dt0721e.pdf.txt
File
MD5
096a91e9cf929264468f8f506153a9be
74387
text/plain
dt0721e.pdf.txt