Business-Cycle Anatomy

George-Marios Angeletos, Fabrice Collard and Harris Dellas ()

American Economic Review, 2020, vol. 110, issue 10, 3030-70

Abstract: We propose a new strategy for dissecting the macroeconomic time series, provide a template for the business-cycle propagation mechanism that best describes the data, and use its properties to appraise models of both the parsimonious and the medium-scale variety. Our findings support the existence of a main business-cycle driver but rule out the following candidates for this role: technology or other shocks that map to TFP movements; news about future productivity; and inflationary demand shocks of the textbook type. Models aimed at accommodating demand-driven cycles without a strict reliance on nominal rigidity appear promising.

JEL-codes: C22 E10 E32 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (59)

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Related works:
Working Paper: Business-Cycle Anatomy (2020)
Working Paper: Business Cycle Anatomy (2020)
Working Paper: Business Cycle Anatomy (2018)
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DOI: 10.1257/aer.20181174

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