Business cycles in a small open Brazilian economy
We develop a dynamic general equilibrium model for a small open economy to investigatewhich combinations of preferences and distortions better replicate the Brazilian business cycles. We find that the preferences proposed by Greenwood, Hercowitz and Huffman (1988) in association with capital adjust...
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| Format: | Article |
| Language: | Portuguese |
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Universidade de São Paulo
2001-06-01
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| Series: | Economia Aplicada |
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| Online Access: | https://www.revistas.usp.br/ecoa/article/view/219765 |
| _version_ | 1827594155343216640 |
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| author | Fabio Kanczuk |
| author_facet | Fabio Kanczuk |
| author_sort | Fabio Kanczuk |
| collection | DOAJ |
| description |
We develop a dynamic general equilibrium model for a small open economy to investigatewhich combinations of preferences and distortions better replicate the Brazilian business cycles. We find that the preferences proposed by Greenwood, Hercowitz and Huffman (1988) in association with capital adjustment costs generate simulated data consistent with the cyclical volatilities of the national income accounts identity as well as with the countercyclical nature ofthe trade balance. The standard (Hansen, 1985) preferences and foreign capital markets transaction costs are, in contrast, largely inconsistent with many data properties.
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| first_indexed | 2024-03-09T02:24:47Z |
| format | Article |
| id | doaj.art-85d5c66d7ec8413c9228d77506960583 |
| institution | Directory Open Access Journal |
| issn | 1413-8050 1980-5330 |
| language | Portuguese |
| last_indexed | 2024-03-09T02:24:47Z |
| publishDate | 2001-06-01 |
| publisher | Universidade de São Paulo |
| record_format | Article |
| series | Economia Aplicada |
| spelling | doaj.art-85d5c66d7ec8413c9228d775069605832023-12-06T16:14:29ZporUniversidade de São PauloEconomia Aplicada1413-80501980-53302001-06-0153Business cycles in a small open Brazilian economyFabio Kanczuk0Universidade de São Paulo. Faculdade de Economia, Administração e Contabilidade We develop a dynamic general equilibrium model for a small open economy to investigatewhich combinations of preferences and distortions better replicate the Brazilian business cycles. We find that the preferences proposed by Greenwood, Hercowitz and Huffman (1988) in association with capital adjustment costs generate simulated data consistent with the cyclical volatilities of the national income accounts identity as well as with the countercyclical nature ofthe trade balance. The standard (Hansen, 1985) preferences and foreign capital markets transaction costs are, in contrast, largely inconsistent with many data properties. https://www.revistas.usp.br/ecoa/article/view/219765transaction costs in foreign capital marketscapital adjustment costs |
| spellingShingle | Fabio Kanczuk Business cycles in a small open Brazilian economy Economia Aplicada transaction costs in foreign capital markets capital adjustment costs |
| title | Business cycles in a small open Brazilian economy |
| title_full | Business cycles in a small open Brazilian economy |
| title_fullStr | Business cycles in a small open Brazilian economy |
| title_full_unstemmed | Business cycles in a small open Brazilian economy |
| title_short | Business cycles in a small open Brazilian economy |
| title_sort | business cycles in a small open brazilian economy |
| topic | transaction costs in foreign capital markets capital adjustment costs |
| url | https://www.revistas.usp.br/ecoa/article/view/219765 |
| work_keys_str_mv | AT fabiokanczuk businesscyclesinasmallopenbrazilianeconomy |