This study decomposes the casino hospitality business cycles of Las Vegas and Macao into highgrowth states (HGS) low-growth (LGS) using a Markov switching model. The gaming sector in experiences greater fluctuations than due to more volatility tourism flows; that is, has slightly higher HGS considerably lower LGS Vegas. Vegas’s cycle appears be robust Macao’s, although both are desirably asymme...

We propose a mechanism that explains standard stylized facts in both international macroeconomics and finance. To do so, we develop New Keynesian DSGE model with financial frictions à la Bernanke et al. (1999), which depart from the full-information rational expectations (FIRE) assumption. The key ingredient is home information bias (HIB) expectations. While FIRE predicts high consumption co-mo...

ion layer dimension: target-specific aggregation and filtering of information which allows the selective hiding of company-internal information while offering to expose CBP relevant information to partners Fig. 3: Cross-organisational Business Process (CBP) Framework (Greiner and Jäkel 2007) The modelling level dimension incorporates three modelling levels: The Business level represents the bus...

This paper studies bank loans over the business cycles in Iran to determine the role of Iranian banks in stabilizing credit. By estimating the long-run relations using dynamic OLS and fully modified OLS estimators, the findings show that real bank lending is positively related to real GDP in the long-run providing evidences of the pro-cyclicality of bank lending in Iran. Hence, Iranian banking ...

I compare the canonical sunspots and real business cycle models of aggregate fluctuations. The sunspots model, distinguished by production externalities, is better able to reproduce the typical spectral shape of growth rates found in the data. However, it generates excessive investment volatility and overstates high frequency behavior in employment, investment and output series. The introductio...