Productivity Growth, Consumer Confidence and the Business Cycle

Jean-Pierre Danthine, John B Donaldson and Thore Johnsen

No 1779, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The objective of this paper is to provide, in the context of a dynamic general equilibrium model, an answer to the following five questions: 1) To what extent does an economy subject to regular variations in labour productivity growth differ from one where labour productivity is constant? 2) What is the impact on major macroeconomic indicators of a one-time change in labour productivity growth? 3) What are the business cycle implications of autonomous (non-falsifiable) changes in growth expectations? 4) What is the potential of such expectation changes for explaining the volatility of consumption to output ratio? 5) Can autonomous changes in growth expectations help us understand recent business cycle episodes?

Keywords: Business Cycle; Consumption; Labour Productivity (search for similar items in EconPapers)
JEL-codes: E1 E2 E32 (search for similar items in EconPapers)
Date: 1998-01
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Citations: View citations in EconPapers (30)

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Related works:
Journal Article: Productivity growth, consumer confidence and the business cycle (1998)
Working Paper: Productivity Growth, Consumer Confidence and the Business Cycle (1997)
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