02131cas a2200253 a 4500 AALejournalIMF013638 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484378144 1018-5941 BD-DhAAL BD-DhAAL Alquist, Ron. The Comovement in Commodity Prices : Sources and Implications / Ron Alquist, Olivier Coibion. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (63 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We present a simple macroeconomic model with a continuum of primary commodities used in the production of the final good, such that the real prices of commodities have a factor structure. One factor captures the combined contribution of all aggregate shocks which have no direct effects on commodity markets other than through general equilibrium effects on output, while other factors represent direct commodity shocks. Thus, the factor structure provides a decomposition of underlying structural shocks. The theory also provides guidance on how empirical factors can be rotated to identify the structural factors. We apply factor analysis and the identification conditions implied by the model to a cross-section of real non-energy commodity prices. The theoretical restrictions implied by the model are consistent with the data and thus yield a structural interpretation of the common factors in commodity prices. The analysis suggests that commodity-related shocks have generally played a limited role in global business cycle fluctuations. Mode of access: Internet Coibion, Olivier. IMF Working Papers; Working Paper ; No. 2013/140 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/140/001.2013.issue-140-en.xml IMF e-Library