Technology, demand, and productivity: What an industry model tells us about business cycles

Zuzana Molnarova and Michael Reiter

Journal of Economic Dynamics and Control, 2022, vol. 134, issue C

Abstract: In this paper, we study the relative importance of demand and technology shocks in generating business cycle fluctuations, both at the aggregate level and at the level of individual industries. We construct a New Keynesian DSGE model that is highly disaggregated at the industry level with an input-output network structure. Measured productivity in the model fluctuates in response to both technology and demand shocks due to endogenous factor utilization. We estimate the model by the simulated method of moments using U.S. industry data from 1960 to 2005.

Keywords: Business cycles; Productivity; Industries; Factor utilization; Input-output linkages; Networks (search for similar items in EconPapers)
JEL-codes: E24 E32 E37 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165188921002074
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Technology, demand, and productivity: what an industry model tells us about business cycles (2021)
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:eee:dyncon:v:134:y:2022:i:c:s0165188921002074

DOI: 10.1016/j.jedc.2021.104272

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Catherine Liu ().