What drives endogenous growth in the United States?

Dennis Wesselbaum

The B.E. Journal of Macroeconomics, 2015, vol. 15, issue 1, 183-221

Abstract: The cleansing effects of recessions are investigated. We estimate a DSGE model allowing for endogenous growth to be driven by two competing theories. Either learning-by-doing effects or cleansing effects of recessions drive endogenous growth. Using Bayesian estimation techniques we find that reallocation effects in recessions dominate and also non-technological innovations have effects on productivity and, hence, long-run growth. Furthermore, we show that using directly observable TFP in the estimation has sizable effects on parameter estimates, the identification of shocks, and model dynamics.

Keywords: business cycles; cleansing effects of recessions; endogenous growth; learning-by-doing (search for similar items in EconPapers)
JEL-codes: C11 E32 O40 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/bejm-2013-0179 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:bejmac:v:15:y:2015:i:1:p:39:n:5

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejm/html

DOI: 10.1515/bejm-2013-0179

Access Statistics for this article

The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti

More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().