Accounting for the economic relationship between Japan and the Asian Tigers

Hideaki Hirata; Keisuke Otsu

doi:10.1016/j.jjie.2016.06.001

Accounting for the economic relationship between Japan and the Asian Tigers

Hideaki Hirata, Keisuke Otsu

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

Abstract

This paper applies the business cycle accounting method of Chari, Kehoe and McGrattan (2007) to a two-country, two-good model based on Backus, Kehoe and Kydland (1994) to investigate the economic relationship between Japan and the Asian Tigers from 1980Q1 to 2008Q2. We find that the main driver of long-run shifts and short-run fluctuations in output in each economy is domestic production efficiency. Furthermore, the recent increase in the cross-country business cycle correlation between the two can be attributed to an increase in the cross-country correlation of production efficiencies.

Original language	English
Pages (from-to)	57-68
Number of pages	12
Journal	Journal of The Japanese and International Economies
Volume	41
DOIs	https://doi.org/10.1016/j.jjie.2016.06.001
Publication status	Published - 2016 Sept 1
Externally published	Yes

Keywords

Business cycle accounting
E13,;E32
F41
International business cycles
Productivity

ASJC Scopus subject areas

Finance
Economics and Econometrics
Political Science and International Relations

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10.1016/j.jjie.2016.06.001

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title = "Accounting for the economic relationship between Japan and the Asian Tigers",

abstract = "This paper applies the business cycle accounting method of Chari, Kehoe and McGrattan (2007) to a two-country, two-good model based on Backus, Kehoe and Kydland (1994) to investigate the economic relationship between Japan and the Asian Tigers from 1980Q1 to 2008Q2. We find that the main driver of long-run shifts and short-run fluctuations in output in each economy is domestic production efficiency. Furthermore, the recent increase in the cross-country business cycle correlation between the two can be attributed to an increase in the cross-country correlation of production efficiencies.",

keywords = "Business cycle accounting, E13,;E32, F41, International business cycles, Productivity",

author = "Hideaki Hirata and Keisuke Otsu",

note = "Funding Information: The authors thank Jagjit Chadha, Kazumasa Iwata, M. Ayhan Kose, Tsutomu Miyagawa, Kenji Miyazaki, Andrea Raffo and participants at the ESRI International Conference, Eastern Economic Association Annual Conference, and the Asian Meeting of the Econometric Society for helpful comments. Any remaining errors are our responsibility. Hirata has received financial support for this research under Japan Society for the Promotion of Science Grant-in-Aid for Scientific Research (C) 15K03468. Also Financial support from the Japan Securities Scholarship Foundation is greatly acknowledged during the revision process. Publisher Copyright: {\textcopyright} 2016 Elsevier Inc.",

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doi = "10.1016/j.jjie.2016.06.001",

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AU - Hirata, Hideaki

AU - Otsu, Keisuke

N1 - Funding Information: The authors thank Jagjit Chadha, Kazumasa Iwata, M. Ayhan Kose, Tsutomu Miyagawa, Kenji Miyazaki, Andrea Raffo and participants at the ESRI International Conference, Eastern Economic Association Annual Conference, and the Asian Meeting of the Econometric Society for helpful comments. Any remaining errors are our responsibility. Hirata has received financial support for this research under Japan Society for the Promotion of Science Grant-in-Aid for Scientific Research (C) 15K03468. Also Financial support from the Japan Securities Scholarship Foundation is greatly acknowledged during the revision process. Publisher Copyright: © 2016 Elsevier Inc.

PY - 2016/9/1

Y1 - 2016/9/1

N2 - This paper applies the business cycle accounting method of Chari, Kehoe and McGrattan (2007) to a two-country, two-good model based on Backus, Kehoe and Kydland (1994) to investigate the economic relationship between Japan and the Asian Tigers from 1980Q1 to 2008Q2. We find that the main driver of long-run shifts and short-run fluctuations in output in each economy is domestic production efficiency. Furthermore, the recent increase in the cross-country business cycle correlation between the two can be attributed to an increase in the cross-country correlation of production efficiencies.

AB - This paper applies the business cycle accounting method of Chari, Kehoe and McGrattan (2007) to a two-country, two-good model based on Backus, Kehoe and Kydland (1994) to investigate the economic relationship between Japan and the Asian Tigers from 1980Q1 to 2008Q2. We find that the main driver of long-run shifts and short-run fluctuations in output in each economy is domestic production efficiency. Furthermore, the recent increase in the cross-country business cycle correlation between the two can be attributed to an increase in the cross-country correlation of production efficiencies.

KW - Business cycle accounting

KW - E13,;E32

KW - F41

KW - International business cycles

KW - Productivity

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JF - Journal of The Japanese and International Economies

ER -

Accounting for the economic relationship between Japan and the Asian Tigers

Abstract

Keywords

ASJC Scopus subject areas

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