Replication data for: BKK the EZ Way: International Long-Run Growth News and Capital Flows
- Colacito, Ric
- Croce, Max
- Ho, Steven
- Howard, Philip
AbstractWe study the response of international investment flows to short- and long-run growth news. Among developed G7 countries, positive long-run news for domestic productivity induces a net outflow of investments, in contrast to the effects of short-run growth shocks. We document that a standard Backus, Keho, and Kydland (1994) (BKK) model fails to reproduce this novel empirical evidence. We augment this model with Epstein and Zin (1989) preferences (EZ-BKK) and characterize the resulting recursive risk-sharing scheme. The response of international capital flows in the EZ-BKK model is consistent with the data.
Is supplement to
DOI: 10.1257/aer.20141123 (Text)
Colacito, Ric, Max Croce, Steven Ho, and Philip Howard. “BKK the EZ Way: International Long-Run Growth News and Capital Flows.” American Economic Review 108, no. 11 (November 2018): 3416–49. https://doi.org/10.1257/aer.20141123.
- ID: 10.1257/aer.20141123 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12