Is it labor, technology or monetary policy ? The Israeli economy 1989-2002

Sigal Ribon

No 2003.02b, Bank of Israel Working Papers from Bank of Israel

Abstract: The paper analyses the relative importance of shocks to labor supply, aggregate supply, aggregate demand, monetary policy and immigration in explaining the course of the Israeli economy in 1989-2002. We use structural VAR with short-run and long-run restrictions in order to identify the structural shocks. We learn that variations in output were due mostly to shocks to productivity. (Unexpected) changes in the intensity of immigration play a significant role in explaining the variation of labor supply and contribute to the explanation of the shocks to aggregate supply. Temporary shocks to monetary policy play a relatively minor part in explaining deviations in labor and output supply, as was found in other studies for Israel and elsewhere. Our findings concerning the factors that affected actual growth during the period studied here are consistent with the actual decline in measured labor productivity during those years.

Pages: 37 pages
Date: 2003-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2003.02b.pdf First version, 2003 (application/pdf)

Related works:
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:boi:wpaper:2003.02b

Access Statistics for this paper

More papers in Bank of Israel Working Papers from Bank of Israel Contact information at EDIRC.
Bibliographic data for series maintained by Yossi Yakhin ().