What Explains The Great Moderation in the U.S.? A Structural Analysis
Fabio Canova
Journal of the European Economic Association, 2009, vol. 7, issue 4, 697-721
Abstract:
This paper investigates what has caused output and inflation volatility to fall in the U.S. using a small scale structural model using Bayesian techniques and rolling samples. There are instabilities in the posterior of the parameters describing the private sector, the policy rule, and the variance of the shocks. Results are robust to the specification of the policy rule. Changes in the parameters describing the private sector are the largest, but those of the policy rule and the covariance matrix of the shocks explain the changes most. (JEL: E52, E47, C53) (c) 2009 by the European Economic Association.
JEL-codes: C53 E47 E52 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (90)
Downloads: (external link)
http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1542-4774/issues link to full text (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: What explains the Great Moderation in the US? A structural analysis (2007)
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:tpr:jeurec:v:7:y:2009:i:4:p:697-721
Access Statistics for this article
Journal of the European Economic Association is currently edited by Xavier Vives, George-Marios Angeletos, Orazio P. Attanasio, Fabio Canova and Roberto Perotti
More articles in Journal of the European Economic Association from MIT Press
Bibliographic data for series maintained by The MIT Press (mitp-repec@mit.edu).