The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

International Real Business Cycles

  • Mario J. Crucini
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1994

Abstract

International business cycle research seeks to summarize the statistical properties of worldwide economic fluctuations and model them as the outcome of purposeful decisions by individuals, firms and policymakers who react to changes in their economic environment and an uncertain future. The focus is on identifying the sources of fluctuations and how interactions of economic actors play out in terms of cyclical movements in variables such as gross domestic product. The term ‘real’ indicates a sub-area of the research programme that focuses on non-monetary dimensions such as changes in productivity and fiscal policy rather than in the money supply and monetary policy.

Keywords

Adjustment costs Armington aggregator Asset market structure Business cycle measurement Business cycles Capital accumulation Capital utilization Consumption function Consumption smoothing Current account Euler equations Expectations Factor mobility Imperfect competition Incomplete markets International finance International real business cycles International taxation International trade Intertemporal substitution effect Law of large numbers Law of one price Nominal exchange rates Open economy analysis Permanent-income hypothesis Purchasing power parity Rational expectations Real business cycles Real exchange rates Risk sharing State space models Sticky prices Terms of trade Total factor productivity Trade costs Wealth World business cycle 

JEL Classifications

F4 
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Notes

Acknowledgments

The author is grateful to Ben Eden for comments and to Hakan Yilmazkuday for excellent research assistance

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Mario J. Crucini
    • 1
  1. 1.