THE SOURCES OF THE DECLINE IN U.S. OUTPUT VOLATILITY

Kyongwook Choi and Chulho Jung

Contemporary Economic Policy, 2008, vol. 26, issue 1, 132-144

Abstract: In this paper, we investigate the sources of the decline in U.S. output volatility. We estimate structural vector autoregression models before and after the structural break date of the first quarter of 1984. We find that the magnitude of both supply and demand shocks in the pre‐1984 period is greater than that in the post‐1984 period. We also find that the relative importance of the demand shocks in the post‐1984 has decreased drastically compared to the pre‐1984 period. Further counterfactual analyses show that good luck, good policies, and better business practices might have played a role in reducing U.S. output volatility. (JEL E30, E60, C32)

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/j.1465-7287.2007.00053.x

Related works:
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:bla:coecpo:v:26:y:2008:i:1:p:132-144

Ordering information: This journal article can be ordered from
https://ordering.onl ... 5-7287&ref=1465-7287

Access Statistics for this article

Contemporary Economic Policy is currently edited by Brad R. Humphreys

More articles in Contemporary Economic Policy from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().