Technology and non-technology shocks in a two-sector economy

Francesco Busato (), Alessandro Girardi and Amedeo Argentiero ()
Additional contact information
Alessandro Girardi: ISAE - Institute for Studies and Economic Analyses and University of Rome Tor Vergata

No 96, ISAE Working Papers from ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY)

Abstract: This paper presents an empirically testable two-sector dynamic general equilibrium model for the United States economy that admits technology and non-technology shocks. Long-run identification restrictions further distinguish the impact of each shocks over the originating sector (i.e. as a sector-specific shock), and over other sectors different from the originating one (i.e. as a crosssector shock), also exploring the shocks transmission mechanism across sectors. There are three main results. First, business cycles are mainly generated, in each sector, by technology shocks (primarily described by sector-specific shocks), but they are transmitted across sectors along the sectors’ demand side, i.e. passing through non-technology shocks. Second, technology and nontechnology shocks almost equally share the responsibility of fluctuations in the aggregate manufacturing sector. Third, the aggregate dynamics is driven by the relatively larger sector which is the non-durable good one.

Keywords: Long-run restrictions; sector-specific shocks; cross sector shocks; real business cycle; United States economy. (search for similar items in EconPapers)
JEL-codes: E2 E3 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-mac and nep-tid
Date: 2008-04
View list of references

Downloads: (external link)
http://www.isae.it/Working_Papers/WP_96_2008_Busato_Girardi_Argentiero.pdf (application/pdf)

Related works:
Working Paper: Technology and non-technology shocks in a two-sector economy (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:isa:wpaper:96

Access Statistics for this paper

More papers in ISAE Working Papers from ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY)
Contact information at EDIRC.
Series data maintained by Anita Guelfi ().