Endogenous business cycles and the dynamics of output, hours, and consumption

Stephanie Schmitt-Grohe

No 1998-19, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: This paper studies the business-cycle fluctuations predicted by a two-sector endogenous-business-cycle model with sector-specific external increasing returns to scale. It focuses on aspects of actual fluctuations that have been identified both as defining features of the business cycle and as ones that standard real-business-cycle models cannot explain: the autocorrelation function of output growth, the impulse response function of output to demand shocks, and the forecastable movements of output, hours, and consumption. For empirically realistic calibrations of the degree of sector-specific external returns to scale, the results suggest that endogenous fluctuations do not provide the dynamic element that is missing in existing real-business-cycle models.

Keywords: Business cycles; Input-output analysis (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.federalreserve.gov/pubs/feds/1998/199819/199819abs.html (text/html)
http://www.federalreserve.gov/pubs/feds/1998/199819/199819pap.pdf (application/pdf)

Related works:
Journal Article: Endogenous Business Cycles and the Dynamics of Output, Hours, and Consumption (2000)
Working Paper: Endogenous Business Cycles and the Dynamics of Output, Hours, and Consumption (1999)
Working Paper: Endogenous business cycles and the dynamics of output, hours, and consumption (1999)
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:fip:fedgfe:1998-19

Access Statistics for this paper

More papers in Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier (ryan.d.wolfslayer@frb.gov).