EconPapers    
Economics at your fingertips  
 

Ireland’s Great Depression

Alan Ahearne (), Finn Kydland and Mark Wynne

The Economic and Social Review, 2006, vol. 37, issue 2, 215-243

Abstract: We argue that Ireland experienced a great depression in the 1980s comparable in severity to the better known and more studied depression episodes of the interwar period. Using the business cycle accounting framework of Chari, Kehoe and McGrattan (2005), we examine the factors that led to the depression and the subsequent recovery in the 1990s. We calculate efficiency, labour, investment and government wedges and evaluate the contribution of each to the downturn and subsequent recovery. We find that the efficiency wedge on its own can account for a significant portion of the downturn, but predicts a stronger recovery in output than occurred. The labour wedge also helps account for what happened during the depression episode. We also find that the investment wedge played no role in the depression.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.esr.ie/Vol37_2/05_ahearne_article.pdf First version, 2006 (application/pdf)

Related works:
Working Paper: Ireland's great depression (2005) Downloads
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:eso:journl:v:37:y:2006:i:2:p:215-243

Access Statistics for this article

More articles in The Economic and Social Review from Economic and Social Studies
Bibliographic data for series maintained by Aedin Doris ().

 
Page updated 2025-03-19
Handle: RePEc:eso:journl:v:37:y:2006:i:2:p:215-243