05726oam 22012614 450 991097078230332120250426110901.097866128428879781462330553146233055X978145187214914518721439781451991307145199130497812828428851282842889(CKB)3170000000055228(SSID)ssj0000940032(PQKBManifestationID)11491948(PQKBTitleCode)TC0000940032(PQKBWorkID)10948361(PQKB)11287724(OCoLC)550641092(MiAaPQ)EBC1605894(IMF)WPIEE2009067(IMF)WPIEA2009067WPIEA2009067(EXLCZ)99317000000005522820020129d2009 uf 0engurcn|||||||||txtccrAccounting for Output Drops in Latin America /Ruy Lama1st ed.Washington, D.C. :International Monetary Fund,2009.49 p. illIMF Working PapersBibliographic Level Mode of Issuance: Monograph9781451916492 1451916493 Includes bibliographical references.Intro -- Contents -- I. Introduction -- II. Benchmark Small Open Economy Model -- III. Quantitative Analysis -- A. Calibration and Estimation -- B. Simulation: Accounting for Output Drops in Latin America -- IV. Sensitivity Analysis -- A. High Risk Aversion Coefficient -- B. No Adjustments Costs -- C. Variable Capital Utilization -- V. Concluding Remarks -- Appendices -- A. Benchmark Small Open Economy Model -- B. Equivalence between Wedges and Theoretical Models -- C. Data Sources -- References -- Figures -- 1. Detrended GDP per capita in Latin American Economies -- 2. TFP, Labor Wedge, Capital Wedge, and Bond Wedge -- 3. Effect of TFP on GDP -- 4. Effect of Labor Wedge on GDP -- 5. Labor Wedge, Model Prediction, and Real Interest Rate -- 6. Effect of Capital Wedge on GDP -- 7. Effect of Bond Wedge on GDP -- 8. Sensitivity Analysis -- Tables -- 1. Calibrated Parameters -- 2. Parameters of Stochastic Processes -- 3. Contributions to Output Drops -- 4. Properties of Wedges -- 5. Model Predictions.This paper evaluates what type of models can account for the recent episodes of output drops in Latin America. I develop an open economy version of the business cycle accounting methodology (Chari, Kehoe, and McGrattan, 2007) in which output fluctuations are decomposed into four sources: total factor productivity (TFP), a labor wedge, a capital wedge, and a bond wedge. The paper shows that the most promising models are the ones that induce fluctuations of TFP and the labor wedge. On the other hand, models of fnancial frictions that translate into a bond or capital wedge are not successful in explaining output drops in Latin America. The paper also discusses the implications of these results for policy analysis using alternative DSGE models.IMF Working Papers; Working Paper ;No. 2009/067Business cyclesLatin AmericaBusiness forecastingLatin AmericaBondsimfBusiness cyclesimfCapacityimfCapital and Total Factor ProductivityimfCostimfEconomic forecastingimfEconomic growthimfEconomic theory & philosophyimfEconomic TheoryimfFinancial EconomicsimfFinancial frictionsimfGeneral Financial Markets: General (includes Measurement and Data)imfIncome economicsimfIndustrial productivityimfInvestment & securitiesimfInvestments: BondsimfLabor economicsimfLabor Economics: GeneralimfLaborimfLabourimfMacroeconomicsimfPrices, Business Fluctuations, and Cycles: General (includes Measurement and Data)imfProduction and Operations ManagementimfProductionimfTotal factor productivityimfArgentinaimfBusiness cyclesBusiness forecastingBondsBusiness cyclesCapacityCapital and Total Factor ProductivityCostEconomic forecastingEconomic growthEconomic theory & philosophyEconomic TheoryFinancial EconomicsFinancial frictionsGeneral Financial Markets: General (includes Measurement and Data)Income economicsIndustrial productivityInvestment & securitiesInvestments: BondsLabor economicsLabor Economics: GeneralLaborLabourMacroeconomicsPrices, Business Fluctuations, and Cycles: General (includes Measurement and Data)Production and Operations ManagementProductionTotal factor productivityLama Ruy1816070International Monetary Fund.DcWaIMFBOOK9910970782303321Accounting for Output Drops in Latin America4372380UNINA