IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v28y2020i1p209-234.html
   My bibliography  Save this article

Noisy information, risk sharing, and international business cycles

Author

Listed:
  • Zi‐Yi Guo

Abstract

We introduce a noisy information structure into an otherwise standard international real business cycle model with two countries. When domestic firms observe current foreign technology with some noise, predictions of the model on international correlation can be very different from those of a standard perfect information model. We show that the model can explain: (a) positive output correlation both in complete and incomplete market models, (b) consumption correlation smaller than output correlation with an introduction of information‐constrained consumers, and (c) observation of both positive and negative productivity–hours correlation in two countries.

Suggested Citation

  • Zi‐Yi Guo, 2020. "Noisy information, risk sharing, and international business cycles," Review of International Economics, Wiley Blackwell, vol. 28(1), pages 209-234, February.
    • Handle: RePEc:bla:reviec:v:28:y:2020:i:1:p:209-234
    DOI: 10.1111/roie.12447
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/roie.12447
    Download Restriction: no
    File URL: https://libkey.io/10.1111/roie.12447?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michał Brzoza‐Brzezina & Jacek Kotłowski & Grzegorz Wesołowski, 2022. "International information flows, sentiments, and cross‐country business cycle fluctuations," Review of International Economics, Wiley Blackwell, vol. 30(4), pages 1110-1147, September.
    2. Luu Huu Duc, 2024. "Discussing Sharing Investment in Vietnam," Business and Economic Research, Macrothink Institute, vol. 14(2), pages 1-15, December.

    More about this item

    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:bla:reviec:v:28:y:2020:i:1:p:209-234. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    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.