Martin Boileau

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Data for OECD countries document: 1. imports and exports are about three times as volatile as GDP; 2. imports and exports are pro-cyclical, and positively correlated with each other; 3. net exports are counter-cyclical. Standard models fail to replicate the behavior of imports and exports, though they can match net exports relatively well. Inspired by the(More)
From the existing literature, it is not clear what effect financing constraints have on the sensitivities of firms’ investment to their cash flow. I propose an explanation that reconciles the conflicting empirical evidence. I present two models: The unconstrained model, in which firms can raise external funds, and the constrained model, in which firms(More)
This paper studies the role of trade in capital goods and investment-speci c technical change in the determination of the cross-country correlation of output and the volatility of the terms of trade. The cross-country correlation of output for G7 countries ranges from 0.42 to 0.85 and the relative volatility of the terms of trade ranges from 1.24 to 6.06.(More)
PURPOSE To characterize the clinical effects of laser in situ keratomileusis (LASIK) on the cornea and visual performance by the contrast sensitivity function (CSF). SETTING Clinique d'Ophtalmologie IRIS, Laval, Quebec, Canada. METHODS Thirty-four patients aged 18 to 50 years volunteered for this prospective study. All patients had bilateral LASIK to(More)
Cash holdings as a proportion of total assets of North American corporations have roughly doubled between 1971 and 2006. Prior research attributes the large cash increase to a rise in firms’ cash flow volatility. We investigate two mechanisms by which increased volatility can lead to higher cash holdings. The first is the precautionary motive inducing firms(More)
This study examines the international trade of developed countries with the Heckscher–Ohlin–Vanek (HOV) model. In spite of its theoretical importance, previous empirical work failed to support the HOV model in a strict form. The reason why the HOV model does not predict the international trade of developed countries, as has been argued, is because of the(More)
Most quantitative studies of international real business cycle (IRBC) models require the use of approximate solution methods. We solve an IRBC model with incomplete asset markets using King, Plosser and Rebelo’s (1988) linear approximation method. We quantify the additional approximation error brought about by the existence of a unit root in the linear(More)
  • Prakash Apte, Piet Sercu, +17 authors Linda Van de Gucht
  • 2001
This paper analyzes the exchange rate in a “no-arbitrage” or “real business cycle” equilibrium model and provides empirical evidence for this model vis-a-vis PPP. Our contribution is to show, based on a generalization of the equilibrium model of exchange rates, that (i) the test equation linking the exchange rate to fundamentals should allow for(More)
Typically, the prices of financial assets are studied over fixed-time intervals such as the case with monthly or daily returns. Modern technology now allows us to consider each transaction that occurred throughout a trading period and the particular instance in time at which it was placed. Statistical analysis of financial assets conducted at this level is(More)