On the international transmission of technology shocks

• Verfasst von: Enders, Zeno [VerfasserIn]
• Verfasst von: Müller, Gernot J. [VerfasserIn]
• Titel: On the international transmission of technology shocks
• Verf.angabe: Zeno Enders, Gernot J. Müller
• E-Jahr: 2009
• Jahr: 15 February 2009
• Umfang: 15 S.
• Fussnoten: Gesehen am 31.07.2017
• Titel Quelle: Enthalten in: Journal of international economics
• Ort Quelle: Amsterdam [u.a.] : NH Elsevier, 1971
• Jahr Quelle: 2009
• Band/Heft Quelle: 78(2009), 1, Seite 45-59
• ISSN Quelle: 0022-1996
• DOI: doi:10.1016/j.jinteco.2009.02.010
• Datenträger: Online-Ressource
• Sprache: eng
• Bibliogr. Hinweis: Erscheint auch als : Druck-Ausgabe: Enders, Zeno, 1977 - : On the international transmission of technology shocks. - 2009
• Sach-SW: Financial markets
• Sach-SW: Technology shocks
• Sach-SW: Terms of trade
• Sach-SW: Trade balance
• K10plus-PPN: 1561418102

Abstract

Using vector autoregressions on U.S. time series and an aggregate of industrialized countries, we find that technology shocks appreciate the terms of trade and lower the trade balance; they induce an ‘S’-shaped cross-correlation function for both variables (the S-curve). In calibrating a prototypical international business cycle model under complete and incomplete financial markets, we find two distinct sets of parameter values. While both model specifications deliver the S-curve, the underlying transmission mechanism of technology shocks is fundamentally different. Most importantly, only in the incomplete markets economy the terms of trade appreciate and thus amplify the relative wealth effects of technology shocks—as suggested by the evidence.