The Great Depression in Canada and the United States: A Neoclassical Perspective
Pedro Amaral () and
James (Jim) MacGee ()
Review of Economic Dynamics, 2002, vol. 5, issue 1, 45-72
Canada suffered a major depression from 1929 to 1939. In terms of output, it was similar to the Great Depression in the United States. However, total factor productivity (TFP) in Canada did not recover relative to trend, the in the United States TFP had revered by 1937. We find that the neoclassical growth model, with TFP treated as exogenous, can account for over half of the decline in output relative to trend in Canada. In contrast, we find that conventional explanations for the Great Depression - monetary shocks, terms of trade shocks and labor market and competition policies - do not work for Canada. (Copyright: Elsevier)
Keywords: Great Depression; Canada; productivity; terms of trade; deflation (search for similar items in EconPapers)
JEL-codes: E30 N12 N42 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34) Track citations by RSS feed
Downloads: (external link)
http://dx.doi.org/10.1006/redy.2001.0141 Full text (application/pdf)
Access to full texts is restricted to ScienceDirect subscribers and ScienceDirect institutional members. See http://www.sciencedirect.com/ for details.
Working Paper: Data Appendix to The Great Depression in Canada and the United States: A Neoclassical Perspective (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:red:issued:v:5:y:2002:i:1:p:45-72
Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/
Access Statistics for this article
Review of Economic Dynamics is currently edited by Jonathan Heathcote and Vincenzo Quadrini
More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().