NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A Small Open Economy in Depression: Lessons from Canada in the 1930s

Caroline M. Betts, Michael D. Bordo, Angela Redish

NBER Working Paper No. 4515 (Also Reprint No. r2098)
Issued in November 1993
NBER Program(s):   ME

This paper tests the hypothesis that idiosyncratic U.S. disturbances and their international propagation can account for the global Depression. Exploiting common stochastic trends in U.S. and Canadian interwar data, we estimate a small open economy model for Canada that decomposes output fluctuations into sources identifiable with world and country-specific disturbances. We find that the onset, depth and duration of output collapse in both Canada and the U.S. are primarily attributable to a common, permanent output shock leaving little significant role for idiosyncratic disturbances originating in either economy.

download in pdf format
   (5699 K)

download in djvu format
   (648 K)

email paper

This paper is available as PDF (5699 K) or DjVu (648 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4515

Published: Canadian Journal of Economics, vol. XXIX, no. 1, pp. 1-36, February 1996. citation courtesy of

Users who downloaded this paper also downloaded these:
Bordo and Redish w2079 Why did the Bank of Canada Emerge in 1935?
Bordo and Redish w2431 Credible Commitment and Exchange Rate Stability: Canada's Interwar Experience
Bemanke and James The Gold Standard, Deflation, and Financial Crisis in the Great Depression: An International Comparison
Shearer and Clark Canada and the Interwar Gold Standard, 1920-35: Monetary Policy without a Central Bank
Fernandez-Villaverde, Greenwood, and Guner w15677 From Shame to Game in One Hundred Years: An Economic Model of the Rise in Premarital Sex and its De-Stigmatization
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us