International real business cycles : a re-visit

It is well known that several quantitative properties of international real business cycle models with are at odds with the data. First, the cross-country correlations are much higher for consumption than for output, while in the data the opposite is true (the BKK puzzle). Second, cross-country correlations of employment and investment are negative, while in the data they are positive. This paper quantitatively shows that preferences with a zero income effect on labor supply help generate a correct cross-country correlation in employment even without any restrictions on financial markets. In a bond economy, a zero income effect in labor supply, combined with time-to-build investment, can generate a positive cross-country correlation in investment, and the BKK puzzle is also resolved when the inter-temporal elasticity of substitution in labor supply is low.

Sancti Gregorij Magni ... Liber moraliu[m] in beatu[m] Iob : singulari sagacitate consummataq[ue] opera per capitula distinctus ... : in cuius calce sententiaru[m] Sacre Scripture ... index ... / que omnia visit, castigauit ... frater Ioannes Lagrenus ...

Pie de imp. tomado del colofón en 3s3v

John Lovell and Jeremiah Allen's statement regarding their visit to Nathan Prince, accompanying Edward Holyoke, July 12, 1742

Lovell and Allen accompanied Holyoke to Nathan Prince's lodging in Boston, to personally inform him that the Board of Overseers had voted for his dismissal and that his belongings had been removed from his chamber and were being stored in town until he chose to claim them.