@techreport{NBERw15428,
 title = "Medium Term Business Cycles in Developing Countries",
 author = "Diego A. Comin and Norman Loayza and Farooq Pasha and Luis Serven",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "15428",
 year = "2009",
 month = "October",
 URL = "http://www.nber.org/papers/w15428",
 abstract = {We build a two country asymmetric DSGE model with two features: (i) endogenous and slow diffusion of technologies from the developed to the developing country, and (ii) adjustment costs to investment flows. We calibrate the model to match the Mexico-U.S. trade and FDI flows. The model is able to explain the following stylized facts: (i) U.S. and Mexican output co-move more than consumption; (ii) U.S. shocks have a larger e¤ect on Mexico than in the U.S.; (iii) U.S. business cycles lead over medium term fluctuations in Mexico; (iv) Mexican consumption is more volatile than output.},
}