This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 102 No. 4 (June 2012)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

The Finnish Great Depression: From Russia with Love

Article Citation

Gorodnichenko, Yuriy, Enrique G. Mendoza, and Linda L. Tesar. 2012. "The Finnish Great Depression: From Russia with Love." American Economic Review, 102(4): 1619-44.

DOI: 10.1257/aer.102.4.1619

Abstract

Why did Finland experience, in 1991-1993, the deepest recession observed in an industrialized country since the 1930s? Using a dynamic general equilibrium model with labor frictions, we argue that the collapse of the Soviet-Finnish trade was a major contributor to the contraction. Finland's experience mirrors that of the transition economies of Eastern Europe, which suffered similar deep recessions coupled with institutional changes. By focusing on the Finnish case, we isolate the effects of the Finnish-Soviet trade collapse and shed new light on the sources of recessions in transition economies.

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (417.80 KB) | Online Appendix (142.62 KB)

Authors

Gorodnichenko, Yuriy (U CA, Berkeley)
Mendoza, Enrique G. (U MD)
Tesar, Linda L. (U MI)

JEL Classifications

E32: Business Fluctuations; Cycles
F14: Country and Industry Studies of Trade
F41: Open Economy Macroeconomics
P33: Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us