NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Correlated Disturbances and U.S. Business Cycles

Vasco Cúrdia, Ricardo Reis

NBER Working Paper No. 15774
Issued in February 2010

---- Acknowledgements -----

We are especially grateful to Marco Del Negro, Juan Rubio-Ramirez and Frank Schorfheide for helping us significantly improve our method and to Craig Burnside, Lawrence Christiano, Martin Eichenbaum, Alejandro Justiniano, Jonathan Parker, Giorgio Primiceri, Chris Sims, Bent Sorensen, and Mike Woodford for useful comments and discussions. The views expressed in this paper are those of the authors and do not necessarily reflect positions of the Federal Reserve Bank of New York, the Federal Reserve System, or the National Bureau of Economic Research.

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