Reconstructing the great recession

Michele Boldrin, Carlos Garriga (), Adrian Peralta-Alva () and Juan Sanchez

No 2013-006, Working Papers from Federal Reserve Bank of St. Louis

Abstract: This paper evaluates the role of the construction sector in accounting for the performance of the U.S. economy before, during and after the Great Recession. We use input-output analysis to evaluate its linkages with the rest of the economy and measure the transmission of its demand shocks to the overall economy. Such effects are quantified by means of a dynamic multi-sector model parameterized to reproduce the boom-bust dynamics of employment in construction during 2000-13. The model suggests that the interlinkages account for a large share of the actual changes in aggregate employment and gross domestic product during the previous expansion, the recession and the subsequent recovery.

Keywords: Residential investment; multisector models; business cycle accounting (search for similar items in EconPapers)
JEL-codes: E22 E32 O41 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2012-02-15
New Economics Papers: this item is included in nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Reconstructing the Great Recession (2020)
Working Paper: Reconstructing the Great Recession (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlwp:2013-006

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DOI: 10.20955/wp.2013.006

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