a r t i c l e i n f o Global slack hypothesis Inflation expectations Openness Small open economy DSGE model Korea This paper studies the implications of globalization for the dynamics of macroeconomic variables over the business cycle for a small open trade-dependent economy, such as South Korea. We study the impact of globalization through the lens of a structural model. Globalization is model...

This paper constructs a model economy to explain how uncertainty shocks can cause business cycle fluctuations. In the model, during times of high uncertainty, the representative agent, due to risk aversion motives, moves resources from a high risk/high return production process to a low risk/low return production process. High uncertainty thus causes the firm level technology frontier to endoge...

This paper investigates the implications of external indebtedness and international …nancial integration on the e¤ects of foreign interest rate shocks in a small-open economy. The theoretical component of the analysis develops a business cycle model that can successfully match the impulse responses of the Turkish economy to U.S. interest rate shocks. It is found in the context of this model tha...

We use generalized method of moments to estimate a rational expectations aggregate demand/aggregate supply macroeconomic model for five European economies and the United States. Our aim is to examine whether supply or demand shocks have predominated in these economies during the post-war era, and whether shocks of either type have been primarily temporary or permanent in nature. The estimation ...

This study investigates the responsiveness of manufacturing sector performance to major macroeconomic determinants in Nigeria, covering the period between 1981 and 2018. It contributes to attendant literature by examining the asymmetric impact of each of the macroeconomic variables, including GDP per capita, exchange rate, inflation rate, interest rate proxied by prime lending rate, and gross f...

Abstract   his study employs a structural vector autoregression (SVAR) model to investigate the macroeconomic shocks on Malaysian tourism industry, especially how the economy dynamically responds to oil price shocks, exchange rates, changes in price level, exports, economic growth and tourism income during the study time period from January 2001 to December 2012. The results indicate that oil...

In this paper we survey the recent research on the fundamental determinants of stock returns. These studies explore how firms’ systematic risk and their investment and production decisions are jointly determined in equilibrium. Models with production provide insights into several types of empirical patterns, including: i) the correlations between firms’ economic characteristics and their risk p...