The Dynamic Effects of Aggregate Demand and Supply Disturbances

Olivier Blanchard and Danny Quah ()

American Economic Review, 1989, vol. 79, issue 4, 655-73

Abstract: The authors interpret fluctuations in GNP and unemployment as due to two types of disturbances: disturbances that have a permanent effect on output and disturbances that do not. They interpret the first as supply disturbances, the second as demand disturbances. Demand disturbances have a hump-shaped, mirror-image effect on output and unemployment. The effect of supply disturbances on output increases steadily over time, peaking after two years and reaching a plateau after five years. Copyright 1989 by American Economic Association.

Date: 1989
References: Add references at CitEc
Citations: View citations in EconPapers (2555)

Downloads: (external link)
http://links.jstor.org/sici?sici=0002-8282%2819890 ... O%3B2-P&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: The Dynamic Effects of Aggregate Demand and Supply Disturbance (1988)
Working Paper: The Dynamic Effects of Aggregate Demand and Supply Disturbances (1988)
Software Item: BQDODRAWS: RATS procedure to implement Monte Carlo draws from a VAR with Blanchard-Quah factorization
Software Item: RATS programs to replicate Blanchard and Quah AER 1989
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: https://EconPapers.repec.org/RePEc:aea:aecrev:v:79:y:1989:i:4:p:655-73

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().