%0 Journal Article
%T An Empirical Analysis of the Productivity Shock Correlations between US and Rest of the World¡ªTrends, Factors and the Role of Recessions
%A Ergys Islamaj
%J Theoretical Economics Letters
%P 78-82
%@ 2162-2086
%D 2014
%I Scientific Research Publishing
%R 10.4236/tel.2014.41012
%X <p class=\"MsoNormal\" style=\"text-align:justify;\">
	<span lang=\"EN-US\"><span style=\"font-family:Verdana;\">This study uses
quarterly data for a group of advanced and emerging market economies to study
the role of TFP correlations between the US and the Rest of the World.
Following Bosworth and Collins [1], Solow residuals are constructed to proxy
for TFP shocks. Then, bilateral correlations with the US are calculated. Recent
theoretical studies have emphasized the importance of TFP shock correlations
for portfolio choice. The data suggests that the correlations are indeed very
volatile and drop sharply during recessions. Arellano-Bond [2] regressions suggest
that US Recessions are associated with a drop in cross-country productivity
correlations in the medium and long term intervals.</span><o:p></o:p></span> 
</p>
<p class=\"MsoNormal\" style=\"text-align:justify;\">
	<span lang=\"EN-US\" style=\"font-family:Verdana;\"> </span> 
</p>
%K Productivity
%K TFP
%K Solow Residual
%K Recessions
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=42960