TY  - JOUR
AU  - Comin,Diego A.
AU  - Loayza,Norman
AU  - Pasha,Farooq
AU  - Serven,Luis
TI  - Medium Term Business Cycles in Developing Countries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15428
PY  - 2009
Y2  - October 2009
UR  - http://www.nber.org/papers/w15428
L1  - http://www.nber.org/papers/w15428.pdf
N1  - Author contact info:
Diego A. Comin
Harvard Business School
Soldiers Field
Boston, MA 02163
Tel: 617/495-5011
E-Mail: dcomin@hbs.edu

Norman Loayza
The World Bank
1818 H St., NW
Washington, DC 20433
E-Mail: nloayza@worldbank.org

Farooq Pasha
Boston College
Department of Economics
140 Commonwealth Avenue
Chestnut Hill MA 02467-3806 USA
E-Mail: pasha@bc.edu

Luis Serven
The World Bank
1818 H St NW
Washington DC 20433
Tel: 202 473 7451
E-Mail: lserven@worldbank.org
AB  - 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.
ER  -