News & Events
Prof. Martin Boileau, University of Colorado
Posted on 2015-12-04 in Upcoming Seminars
Feb 22, 2016
Prof. Martin Boileau from University of Colorado will present a seminar.
Title: “The Price of Imported Capital and Consumption Fluctuations in Emerging Economies”
Abstract: Authors: Martin Boileau and Michel Normandin
We study the role played by fluctuations in the price of imported capital goods in determining the behavior of consumption fluctuations at the business cycle frequency for developing countries. For this, we document a positive empirical relation between the relative volatility of consumption growth and the volatility of imported capital goods inflation for developing countries. We then show that a small open-economy real business cycle model driven by fluctuations in imported capital goods inflation can account for the positive empirical relation. Finally, confronting the model to the data, we further find that fluctuations in imported capital goods inflation contribute substantially to fluctuations of consumption growth.
Location: Timlin Room (Arts 807)
Time: 4:00 pm
This seminar is part of the Department of Economics Seminar Series. Everyone is welcome.