Access Type
Open Access Dissertation
Date of Award
January 2017
Degree Type
Dissertation
Degree Name
Ph.D.
Department
Economics
First Advisor
Robert J. Rossana
Abstract
Financial crisis of 2007 provides a renewed interest in financial market linkages and their effect on macro variables. In an open-economy dynamic stochastic general equilibrium model setting, two things are investigated in this paper. First, what role do financial linkages play in propagating asymmetric cross-country dynamics. Specifically, the impact of a productivity shock in home country leads to a more synchronous behavior in consumption and investment in recessions than in expansions. Secondly, a new source of shock is included, one in the financial sector itself. Cross-country asset prices and fixed assets move identically in this scenario implying perfect risk-sharing.
Recommended Citation
Sondhi, Arjun, "Essays In International Macroeconomics" (2017). Wayne State University Dissertations. 1879.
https://digitalcommons.wayne.edu/oa_dissertations/1879