IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-00617462.html
   My bibliography  Save this paper

Is There a Quantity Puzzle Within Countries? An Application Using U.S. and Canadian Data

Author

Listed:
  • Jean Imbs

    (Center for Economic Research - CEPR, HEC Lausanne - Faculté des Hautes Etudes Commerciales (HEC Lausanne), London Business School)

Abstract

Fluctuations in Disposable Income (net of transfers) are more correlated across U.S. States or Canadian Provinces than fluctuations in local Production. Across countries, Consumption plans are less correlated than business cycles, a theoretical anomaly famously labeled a "Quantity Puzzle" by Backus, Kehoe and Kydland (1992). In the aggregate, financially integrated regions tend to have highly synchronized GDP fluctuations, as documented in Imbs (2004b). In contrast, within countries, financial integration is associated with less correlated business cycles, in a way consistent with the standard international real business cycle model. In other words, the Quantity Puzzle pertains to international data, and it stems from the specific impact of capital flows on international output correlations.

Suggested Citation

  • Jean Imbs, 2004. "Is There a Quantity Puzzle Within Countries? An Application Using U.S. and Canadian Data," Post-Print hal-00617462, HAL.
    • Handle: RePEc:hal:journl:hal-00617462
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. Fratzscher, Marcel & Imbs, Jean, 2009. "Risk sharing, finance, and institutions in international portfolios," Journal of Financial Economics, Elsevier, vol. 94(3), pages 428-447, December.

    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:hal:journl:hal-00617462. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.