Disentangling Business Cycles and Macroeconomic policy in Mercosur: a VAR and an Unobserved Components Models Approaches

Modeling the Impact of Real and Financial Shocks on Mercosur: The Role of the Exchange Rate Regime

“…Curiously, Uruguay does not exhibit these features: but the extent of idiosyncratic domestic volatility during the period displayed by the primary data (see Allegret and Sand-Zantman 2007) probably conceals a large part of the foreign perturbations spillover.…”

“…In Brazil and Uruguay, we consider prices as the most exogenous domestic variable: these countries have a long tradition of price indexation (the succession 13 See Allegret and Sand-Zantman (2007). 14 Faust and Leeper (1997) criticize the widespread use of long run restrictions to study the sources of business cycles because of the weak reliability of structural inference for finite samples.…”

Symmetry of External Shock Responses within the Andean Community of Nations: A SVAR Approach

“…However in recent years several authors have used Structural VAR models (SVAR) (Cushman and Tao, 1997;Kim and Roubini, 2000;Canova, 2005;Mackowiak, 2005;Gimet, 2007;Allegret and Sand, 2007) due to the fact that they make it possible to take into account the economic theory in modeling the countries' behavior and identify the shocks for a better interpretation of results. (See Appendix 1 for a formalization of the SVAR model).…”

Business Cycle Synchronization and Optimum Currency Areas: The Case of the Economic Community of West African States

“…However, an earlier finding by [61] suggested that the Argentinean's business cycle could be improved upon, if the economic environment were made to be more idiosyncratic. Also, the findings of [62] revealed that the business cycles for Latin American countries are weak and non-synchronous, due to asymmetry of shocks and divergences in policy responses.…”