This paper studies the properties of business cycle uctuations in Latin American economies. Following Aguiar and Gopinath (2007), we identify the nature of aggregate shocks that hit these economies. For a selected sample of countries, namely, Argentina, Brazil, Chile, Colombia, Peru, Mexico and Venezuela, we nd mixed evidence. On the one hand, for some of these countries the permanent component is quite important. For our baseline specication, permanent shocks account for more than 89 percent of the overall productivity shock in Colombia and Venezuela, and about 40-45 percent in Brazil and Peru. On the other hand, Argentina, Chile and Mexico exhibit only highly persistent transitory shocks.
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