IDEAS home Printed from https://ideas.repec.org/a/aej/apecjn/v21y2014i2p52-71.html
   My bibliography  Save this article

Testing International Real Business Cycle Model in Thailand: Why is its cycle so volatile?

Author

Listed:
  • Jirawat Jaroensathapornkul

    (School of Economics and Public Policy, Srinakharinwirot University, Thailand)

Abstract

Categorizing Thailand as small country and the United States as large, the stylized fact reveals a striking difference: The fluctuation of aggregate cycle is higher in the small country. The research explores the reasons for this volatility using a two-country real business cycle model, where the social planner faces with the different country sizes. After parameterization and replication are performed, the benchmark economy roughly conforms to the stylized fact in important dimensions. In the experiment, the country size parameters of the United States are replaced on the parameter of Thailand. As the simulation results, the higher fluctuation of Thailand’s aggregate cycle is almost totally attributable to the high variance of the shocks.

Suggested Citation

  • Jirawat Jaroensathapornkul, 2014. "Testing International Real Business Cycle Model in Thailand: Why is its cycle so volatile?," Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 21(2), pages 52-71, December.
    • Handle: RePEc:aej:apecjn:v:21:y:2014:i:2:p:52-71
    as

    Download full text from publisher

    File URL: http://www.journal.eco.ku.ac.th/upload/document/thai/20150232091532.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Thailand Business Cycle; United states Business Cycle; Two-country real business cycle model; Country size;
    All these keywords.

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aej:apecjn:v:21:y:2014:i:2:p:52-71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chatrat Hemmawat (email available below). General contact details of provider: https://edirc.repec.org/data/feckuth.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.