Front Matter Page
Research Department
Authorized for distribution by Ashoka Mody
Contents
I. Introduction
II. Methodology and Econometric Issues
A. The System
B. Data and Measurement
C. Three-Stage Least Squares and Heteroscedasticity
III. Trade, Finance, Specialization, and Synchronization
A. Equation-by-Equation Estimates
B. Simultaneity and Channels
C. Measures of Effective Financial Integration
D. The Channels Between U.S. States
IV. Robustness
A. GMM Estimates
B. Alternative Measure of Trade
C. Hodrick-Prescott Filter
D. All Sectors
E. Yearly Data
F. Monetary Policy
G. Size
V. Conclusion
Appendix: Sensitivity Analysis
Text Tables:
1a. Summary Statistics across Countries
1b. Summary Statistics across States
2a. Unconditional Correlations across Countries
2b. Unconditional Correlations across States
3. Selected Minima and Maxima
4. Equation-by-Equation Estimations
5. Simultaneous Estimations
6. Alternative Measures of Financial Integration
7. U.S. States
8a. Channels to Business Cycles Synchronization
8b. Channels to Business Cycles Synchronization—International Data
8c. Channels to Business Cycles Synchronization—International Data
Text Figures:
1. Direct and Indirect Channels: Equation-by-Equation Evidence in the Literature
2. Direct and Indirect Channels: Simultaneous Evidence
References