English, Article, Journal or magazine article edition: Computing business cycles in emerging economy models Juan Carlos Hatchondo; Leonardo Martinez; Horacio Sapriza

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Bookmark: http://trove.nla.gov.au/version/74867
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Computing business cycles in emerging economy models
Author
  • Juan Carlos Hatchondo
  • Leonardo Martinez
  • Horacio Sapriza
Physical Description
  • preprint
Notes
  • We show that computing business cycles in emerging economy models using the discrete state space technique may be misleading. We solve the models of sovereign default presented by Aguiar and Gopinath (2006) using interpolation. We find that the simulated behavior of the spread is quite different from the behavior obtained using discrete state space. In fact, some of the results obtained by Aguiar and Gopinath (2006) using discrete state space are reversed when using interpolation. Our analysis thus provides a new set of benchmark results for quantitative models of sovereign default.
  • Business cycles
  • RePEc:fip:fedrwp:06-11
Language
  • English
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