Heckscher-Ohlin Business Cycles
Number: 210
Year: 2002
Author(s): Alejandro Cuat (LSE, CEP and CEPR) e Marco Maffezzoli (Istituto di Economia Politica, Università Bocconi)
This paper introduces Heckscher-Ohlin trade features into a two-country DSGE model, and studies the international transmission of productivity shocks through trade in goods. This framework improves upon existing international real business cycle models in generating business cycle properties comparable with the empirical evidence concerning the terms of trade and the trade balance.
Keywords: International Trade, Heckscher-Ohlin, Business Cycles, Productivity Shocks