Granger causality and equilibrium business cycle theory

Yi Wen

Review, 2007, vol. 89, issue May, 195-206

Abstract: Postwar U.S. data show that consumption growth \\"Granger-causes\\" output and investment growth, which is puzzling if technology is the driving force of the business cycle. The author asks whether general equilibrium models with information frictions and non-technology shocks can rationalize the observed causal relationships. His conclusion is they cannot.

Keywords: Business; cycles (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Granger causality and equilibrium business cycle theory (2006)
Working Paper: Granger Causality and Equilibrium Business Cycle Theory (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:y:2007:i:may:p:195-206:n:v.89no.3

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