Accounting for Business Cycles
We elaborate on the business cycle accounting method proposed by Chari et al. (2006), clear up some misconceptions about the method, and then apply it to compare the Great Recession across OECD countries as well as to the recessions of the 1980s in these countries. We have four main findings. First,...
Main Authors: | , , , |
---|---|
Format: | Book Part |
Language: | English |
Published: |
Elsevier
2016
|
Subjects: | |
Online Access: | https://discovery.ucl.ac.uk/id/eprint/10054394/ |
id |
ftucl:oai:eprints.ucl.ac.uk.OAI2:10054394 |
---|---|
record_format |
openpolar |
spelling |
ftucl:oai:eprints.ucl.ac.uk.OAI2:10054394 2023-12-24T10:17:47+01:00 Accounting for Business Cycles Brinca, P Chari, VV Kehoe, PJ McGrattan, E 2016-09-28 https://discovery.ucl.ac.uk/id/eprint/10054394/ eng eng Elsevier https://discovery.ucl.ac.uk/id/eprint/10054394/ In: Handbook of Macroeconomics. (pp. 1013-1063). Elsevier (2016) Great Recession Labor wedge Efficiency wedge Investment wedge Decomposition of variance Book chapter 2016 ftucl 2023-11-27T13:07:36Z We elaborate on the business cycle accounting method proposed by Chari et al. (2006), clear up some misconceptions about the method, and then apply it to compare the Great Recession across OECD countries as well as to the recessions of the 1980s in these countries. We have four main findings. First, with the notable exception of the United States, Spain, Ireland, and Iceland, the Great Recession was driven primarily by the efficiency wedge. Second, in the Great Recession, the labor wedge plays a dominant role only in the United States, and the investment wedge plays a dominant role in Spain, Ireland, and Iceland. Third, in the recessions of the 1980s, the labor wedge played a dominant role only in France, the United Kingdom, and Belgium. Finally, overall in the Great Recession, the efficiency wedge played a more important role and the investment wedge played a less important role than they did in the recessions of the 1980s. Book Part Iceland University College London: UCL Discovery |
institution |
Open Polar |
collection |
University College London: UCL Discovery |
op_collection_id |
ftucl |
language |
English |
topic |
Great Recession Labor wedge Efficiency wedge Investment wedge Decomposition of variance |
spellingShingle |
Great Recession Labor wedge Efficiency wedge Investment wedge Decomposition of variance Brinca, P Chari, VV Kehoe, PJ McGrattan, E Accounting for Business Cycles |
topic_facet |
Great Recession Labor wedge Efficiency wedge Investment wedge Decomposition of variance |
description |
We elaborate on the business cycle accounting method proposed by Chari et al. (2006), clear up some misconceptions about the method, and then apply it to compare the Great Recession across OECD countries as well as to the recessions of the 1980s in these countries. We have four main findings. First, with the notable exception of the United States, Spain, Ireland, and Iceland, the Great Recession was driven primarily by the efficiency wedge. Second, in the Great Recession, the labor wedge plays a dominant role only in the United States, and the investment wedge plays a dominant role in Spain, Ireland, and Iceland. Third, in the recessions of the 1980s, the labor wedge played a dominant role only in France, the United Kingdom, and Belgium. Finally, overall in the Great Recession, the efficiency wedge played a more important role and the investment wedge played a less important role than they did in the recessions of the 1980s. |
format |
Book Part |
author |
Brinca, P Chari, VV Kehoe, PJ McGrattan, E |
author_facet |
Brinca, P Chari, VV Kehoe, PJ McGrattan, E |
author_sort |
Brinca, P |
title |
Accounting for Business Cycles |
title_short |
Accounting for Business Cycles |
title_full |
Accounting for Business Cycles |
title_fullStr |
Accounting for Business Cycles |
title_full_unstemmed |
Accounting for Business Cycles |
title_sort |
accounting for business cycles |
publisher |
Elsevier |
publishDate |
2016 |
url |
https://discovery.ucl.ac.uk/id/eprint/10054394/ |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
In: Handbook of Macroeconomics. (pp. 1013-1063). Elsevier (2016) |
op_relation |
https://discovery.ucl.ac.uk/id/eprint/10054394/ |
_version_ |
1786206129367285760 |