A method to detect the discontinuity of a shock wave from computational fluid dynamics (CFD) data was developed based on the characteristics. A shock wave is mathematically defined as a convergence of characteristics. Such convergences are interpreted as critical lines of the streamlines, which are easily identified by calculating the eigenvectors of the vector field for the propagation velocit...

This paper provides some new empirical perspectives on the relationship between international trade and macroeconomic fluctuations in industrial economies. First, a comprehensive set of stylized facts concerning fluctuations in trade variables and their determinants is presented. A measure of the quantitative importance of international trade for the propagation of domestic business cycles is t...

This paper employs a structural vector autoregression (SVAR) model to investigate the monetary policy framework of a small emerging open economy Malaysia, especially how the economy dynamically respond to money, interest rate, exchange rate and foreign shocks. We establish identification conditions to uncover the dynamic effects of monetary policy shocks on various domestic variables. Following...

According to the Harberger-Laursen-Metzler (HLM) effect an exogenous increase in the terms of trade faced by a small open economy leads to an improvement in that country’s trade balance. In this paper structural vector autoregression techniques are used to investigate whether there is any systematic pattern in the responses of the trade balance to terms of trade shocks for a large number of sma...

This paper suggests an identified VAR model that identifies monetary policy actions for the G-7 countries without encountering empirical puzzles such as the price puzzle and the liquidity puzzle. Using the model, the effects of monetary policy shocks are examined for the postwar period. Monetary policy shocks have significant effects on output in the short run. However, the contribution of mone...

We develop a global vector autoregressive model GVAR to analyze macroeconomic shock transmission among the East African Community countries. The results suggest that there is a signi…cant growth and in‡ation shock transmissions from Kenya to the rest of the member countries while the transmission in the opposite direction is insigni…cant. The macroeconomic shocks are re‡ected more on prices tha...

This paper is an attempt to investigate the effect of fiscal policy on output in Indonesia using Structural Vector Autoregression (SVAR) methodology for the period 1983:1 – 2010:1. We use contemporaneous restriction and follow Blanchard and Perotti (1999) technique to identify structural fiscal policy shocks in Indonesia. The estimation results show that the government spending shocks are found...

Recessions are associated with increases in uncertainty. This paper shows that a simple model of creative destruction, in which new productive businesses push out old obsolete ones, produces increases in measured uncertainty during recessionary periods even without time-variation in second moments of exogenous shocks. Moreover, the suggested channel is also borne out by the data. Using an estab...