Skip to main content

Research Repository

Advanced Search

A note on the volatility of the tradeable and nontradeable sectors

Povoledo, Laura

Authors



Abstract

This note evaluates whether a New Open Economy model can reproduce qualitatively the observed fluctuations of the tradeable and nontradeable sectors of the U.S. economy. The answer is positive: both in the model and in the data, the standard deviations of tradeable inflation, output, and employment are significantly higher than the standard deviations of the corresponding nontradeable sector variables. The key role in generating this result is played by the greater responsiveness of tradeable sector variables to monetary shocks. © 2012 Cambridge University Press.

Journal Article Type Conference Paper
Publication Date Jul 1, 2013
Journal Macroeconomic Dynamics
Print ISSN 1365-1005
Electronic ISSN 1469-8056
Publisher Cambridge University Press (CUP)
Peer Reviewed Peer Reviewed
Volume 17
Issue 5
Pages 1158-1168
APA6 Citation Povoledo, L. (2013). A note on the volatility of the tradeable and nontradeable sectors. Macroeconomic Dynamics, 17(5), 1158-1168. https://doi.org/10.1017/S1365100511000782
DOI https://doi.org/10.1017/S1365100511000782
Keywords new open economy macroeconomics, tradeable and nontradeable sectors, business cycles
Publisher URL http://dx.doi.org/10.1017/S1365100511000782

Files







You might also like



Downloadable Citations

;