International business cycles

S. Ahmed, B. W. Ickes, Wang Ping Wang, Sam Yoo Byung Sam Yoo

Research output: Contribution to journalArticle

117 Scopus citations


We estimate a dynamic two-country model in which economic fluctuations are driven by a worldwide supply shock, country-specific supply shocks, and relative fiscal, money, and preference shocks. Identification is achieved using only long-run restrictions, based on a theoretical model. The main results, are: supply shocks, particularly country-specific ones, are very important in generating international business cycles, although the post-1973 flexible-exchange-rate period has been inherently more volatile, there are no differences in transmission properties of economic disturbances across exchange-rate regimes for the endogenous variables we focus on. -Authors

Original languageEnglish (US)
Pages (from-to)335-359
Number of pages25
JournalAmerican Economic Review
Issue number3
StatePublished - Jan 1 1993

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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    Ahmed, S., Ickes, B. W., Ping Wang, W., & Byung Sam Yoo, S. Y. (1993). International business cycles. American Economic Review, 83(3), 335-359.