✦ LIBER ✦
Keynesian impulses versus Solow residuals: identifying sources of business cycle fluctuations
✍ Scribed by David N. DeJong; Beth F. Ingram; Charles H. Whiteman
- Book ID
- 101352905
- Publisher
- John Wiley and Sons
- Year
- 2000
- Tongue
- English
- Weight
- 396 KB
- Volume
- 15
- Category
- Article
- ISSN
- 0883-7252
No coin nor oath required. For personal study only.
✦ Synopsis
We employ a neoclassical business-cycle model to study two sources of business-cycle ¯uctuations: marginal eciency of investment shocks, and total factor productivity shocks. The parameters of the model are estimated using a Bayesian procedure that accommodates prior uncertainty about their magnitudes; from these estimates, posterior distributions of the two shocks are obtained. The postwar US experience suggests that both shocks are important in understanding ¯uctuations, but that total factor productivity shocks are primarily responsible for beginning and ending recessions.