LEADER 05726oam 22012614 450 001 9910970782303321 005 20250426110901.0 010 $a9786612842887 010 $a9781462330553 010 $a146233055X 010 $a9781451872149 010 $a1451872143 010 $a9781451991307 010 $a1451991304 010 $a9781282842885 010 $a1282842889 035 $a(CKB)3170000000055228 035 $a(SSID)ssj0000940032 035 $a(PQKBManifestationID)11491948 035 $a(PQKBTitleCode)TC0000940032 035 $a(PQKBWorkID)10948361 035 $a(PQKB)11287724 035 $a(OCoLC)550641092 035 $a(MiAaPQ)EBC1605894 035 $a(IMF)WPIEE2009067 035 $a(IMF)WPIEA2009067 035 $aWPIEA2009067 035 $a(EXLCZ)993170000000055228 100 $a20020129d2009 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aAccounting for Output Drops in Latin America /$fRuy Lama 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2009. 215 $a49 p. $cill 225 1 $aIMF Working Papers 300 $aBibliographic Level Mode of Issuance: Monograph 311 08$a9781451916492 311 08$a1451916493 320 $aIncludes bibliographical references. 327 $aIntro -- 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. 330 3 $aThis paper evaluates what type of models can account for the recent episodes of output drops in Latin America. I develop an open economy version of the business cycle accounting methodology (Chari, Kehoe, and McGrattan, 2007) in which output fluctuations are decomposed into four sources: total factor productivity (TFP), a labor wedge, a capital wedge, and a bond wedge. The paper shows that the most promising models are the ones that induce fluctuations of TFP and the labor wedge. On the other hand, models of fnancial frictions that translate into a bond or capital wedge are not successful in explaining output drops in Latin America. The paper also discusses the implications of these results for policy analysis using alternative DSGE models. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2009/067 606 $aBusiness cycles$zLatin America 606 $aBusiness forecasting$zLatin America 606 $aBonds$2imf 606 $aBusiness cycles$2imf 606 $aCapacity$2imf 606 $aCapital and Total Factor Productivity$2imf 606 $aCost$2imf 606 $aEconomic forecasting$2imf 606 $aEconomic growth$2imf 606 $aEconomic theory & philosophy$2imf 606 $aEconomic Theory$2imf 606 $aFinancial Economics$2imf 606 $aFinancial frictions$2imf 606 $aGeneral Financial Markets: General (includes Measurement and Data)$2imf 606 $aIncome economics$2imf 606 $aIndustrial productivity$2imf 606 $aInvestment & securities$2imf 606 $aInvestments: Bonds$2imf 606 $aLabor economics$2imf 606 $aLabor Economics: General$2imf 606 $aLabor$2imf 606 $aLabour$2imf 606 $aMacroeconomics$2imf 606 $aPrices, Business Fluctuations, and Cycles: General (includes Measurement and Data)$2imf 606 $aProduction and Operations Management$2imf 606 $aProduction$2imf 606 $aTotal factor productivity$2imf 607 $aArgentina$2imf 615 0$aBusiness cycles 615 0$aBusiness forecasting 615 7$aBonds 615 7$aBusiness cycles 615 7$aCapacity 615 7$aCapital and Total Factor Productivity 615 7$aCost 615 7$aEconomic forecasting 615 7$aEconomic growth 615 7$aEconomic theory & philosophy 615 7$aEconomic Theory 615 7$aFinancial Economics 615 7$aFinancial frictions 615 7$aGeneral Financial Markets: General (includes Measurement and Data) 615 7$aIncome economics 615 7$aIndustrial productivity 615 7$aInvestment & securities 615 7$aInvestments: Bonds 615 7$aLabor economics 615 7$aLabor Economics: General 615 7$aLabor 615 7$aLabour 615 7$aMacroeconomics 615 7$aPrices, Business Fluctuations, and Cycles: General (includes Measurement and Data) 615 7$aProduction and Operations Management 615 7$aProduction 615 7$aTotal factor productivity 700 $aLama$b Ruy$01816070 712 02$aInternational Monetary Fund. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910970782303321 996 $aAccounting for Output Drops in Latin America$94372380 997 $aUNINA