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Title: Income Effects on the Trade Balance in the United States: Analysis by Sector
Authors: Miljkovic, Dragan
Paul, Rodney
Keywords: decomposition of variance
real business cycle
trade balance
JEL Codes: F4
Issue Date: 2008-12
Abstract: This study examines the causes of the countercyclicality of the trade balance in the three major sectors of the U.S. economy: services, manufacturing, and agriculture. These results are compared with the results pertinent to the U.S. economy as a whole. At the macroscopic level, Sachs’ hypothesis seems to explain the countercyclicality of the trade balance, while results are mixed across individual sectors. The services sector may be explained by Sachs’ hypothesis, while results for the manufacturing sector are more consistent with the real business cycle hypothesis. The results for the agricultural sector, however, cannot be explained by either hypothesis.
Institution/Association: Journal of Agricultural and Applied Economics>Volume 40, Number 03, December 2008
Total Pages: 16
From Page: 967
To Page: 982
Collections:Volume 40, Number 03, December 2008

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