International Robust Disagreement

Colacito, Ric; Croce, Mariano (Max) Massimiliano

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International Robust Disagreement

American Economic Review, Vol. 102, No. 2, May 2012

5 Pages Posted: 14 Jan 2012

See all articles by Ric Colacito

Ric Colacito

University of North Carolina Kenan-Flagler Business School; NBER

Mariano (Max) Massimiliano Croce

Finance Department, Bocconi University; Centre for Economic Policy Research (CEPR)

Date Written: January 13, 2012

Abstract

We characterize the equilibrium of a two-country, two-good economy in which agents have opposite preference bias toward one of the two consumption goods and fear model misspecification. We document that disagreement about endowments' growth prospects is a persistent endogenous outcome of this class of economies.

Keywords: Robustness, Disagreement, International

JEL Classification: F41

Suggested Citation: Suggested Citation

Colacito, Riccardo and Croce, Mariano Massimiliano, International Robust Disagreement (January 13, 2012). American Economic Review, Vol. 102, No. 2, May 2012, Available at SSRN: https://ssrn.com/abstract=1984845