TY - BOOK ID - 84540838 TI - Correlations Between Real Interest Rates and Output in a Dynamic International Model : Evidence from G-7 Countries PY - 1998 SN - 1462325645 145277238X 1282059599 9786613799128 1451904363 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Econometrics KW - Macroeconomics KW - Macroeconomics: Production KW - Interest Rates: Determination, Term Structure, and Effects KW - Open Economy Macroeconomics KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Innovation KW - Research and Development KW - Technological Change KW - Intellectual Property Rights: General KW - Computable and Other Applied General Equilibrium Models KW - Finance KW - Technology KW - general issues KW - Econometrics & economic statistics KW - Real interest rates KW - Consumption KW - Production growth KW - General equilibrium models KW - Financial services KW - National accounts KW - Production KW - Econometric analysis KW - Interest rates KW - Economics KW - Economic theory KW - Econometric models KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540838 AB - This paper examines the extent to which a dynamic international general equilibrium model can account for observed movements in real interest rates and interest rate differentials. Using data for Group of Seven, the study finds that measured real interest rates are countercyclical in a single country and that the contemporaneous cross-correlations between international real interest differentials and output growth spreads are negative. Predictions of the baseline model are, however, inconsistent with the data. Extending the benchmark model to include habit persistence in consumption improves the match between theory and data. ER -