Title of article
Trade wedges,inventories,andinternationalbusinesscycles
Author/Authors
George Alessandria، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2013
Pages
20
From page
1
To page
20
Abstract
The large,persistentfluctuationsininternationaltradethatcannotbeexplainedin
standardmodelsbychangesinexpendituresandrelativepricesareoftenattributedto
trade wedges.Weshowthatthesetradewedgescanreflectthedecisionsofimportersto
changetheirinventoryholdings.Wefindthatatwo-countrymodelofinternational
businesscycleswithaninventorymanagementdecisioncangeneratetradeflowsand
wedgesconsistentwiththedata.Moreover,matchingtradeflowsalterstheinternational
transmissionofbusinesscycles.Specifically,realnetexportsbecomecountercyclicaland
consumptionislesscorrelatedacrosscountriesthaninstandardmodels.Wealsoshow
that ignoringinventoriesasasourceoftradewedgessubstantiallyoverstatestheroleof
trade wedgesinbusinesscyclefluctuations
Journal title
Journal of Monetary Economics
Serial Year
2013
Journal title
Journal of Monetary Economics
Record number
846566
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