Construct · 1 fields · 1 citations

consumption correlation puzzle: a standalone construct

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International finance

the finding that consumption is less correlated across countries than output, the reverse of what international business cycle models with risk sharing predict.

In international finance, consumption correlation puzzle refers to the finding that consumption is less correlated across countries than output, the reverse of what international business cycle models with risk sharing predict. This meaning comes from Backus (1992) in Journal of Political Economy.[1]

Unit
Recovery means
Measured by

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Nearby constructs

business1 fields · 1 citationsanchor · a standalone construct consumption3 fields · 5 citationsjingle · one word, three constructs correlation4 fields · 4 citationsjingle · one word, four constructs

References

Backus, D. K., Kehoe, P. J., & Kydland, F. E. (1992). International Real Business Cycles. Journal of Political Economy, 100(4), 745-775. https://doi.org/10.1086/261838

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