 Output drops in ASEAN-5 countries: A business cycle accounting perspectiveDou Jiang Economic Modelling, 2023, vol. 126, issue C Abstract: ASEAN-5 countries have experienced several output collapses during the past half-century. Although attempts have been made to identify the underlying factors behind these output drops, how these factors lead to output drops remains underexplored. This study quantitatively investigates the sources of economic fluctuations from 1970 to 2017 in ASEAN-5 countries within the framework of a small open economy with four time-varying wedges. Particular attention is paid to the output drops in the 1980s and during the Asian Financial Crisis. The accounting exercises suggest that the efficiency wedge primarily drives output fluctuations in all countries. This study also ties the observed patterns of the efficiency wedge to some stylized facts, providing potential explanations for the wedge. Empirical evidence shows that financial disruptions coincide with efficiency wedge deterioration, indicating that models of financial frictions that translate into efficiency wedges are the most promising for explaining output drops in these countries. Keywords: Business cycle accounting; Output drops; ASEAN-5 countries (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:126:y:2023:i:c:s0264999323001943 DOI: 10.1016/j.econmod.2023.106382 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.