Emerging market fluctuations: what makes the difference?

"Aggregate fluctuations in emerging countries are quantitatively larger and qualitatively different in key respects from those in developed countries. Using data from Mexico and Canada, this paper decomposes these differences in terms of shocks to aggregate efficiency and shocks that distort th...

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Bibliographic Details
Main Author: Hevia, Constantino (Author)
Format: Electronic eBook
Language:English
Published: [Washington, D.C] World Bank 2009
Series:Policy research working paper 4897
Subjects:
Online Access:Volltext
Summary:"Aggregate fluctuations in emerging countries are quantitatively larger and qualitatively different in key respects from those in developed countries. Using data from Mexico and Canada, this paper decomposes these differences in terms of shocks to aggregate efficiency and shocks that distort the decisions of households about how much to invest, consume, and work in a standard model of a small open economy. The decomposition exercise suggests that most of these differences are explained by fluctuations in aggregate efficiency, distortions in labor decisions over the business cycle, and, most importantly, fluctuations in country risk. Other distortions are quantitatively less important. "--World Bank web site
Item Description:Includes bibliographical references. - Title from PDF file as viewed on 5/7/2009
Physical Description:1 Online-Ressource
DOI:10.1596/1813-9450-4897