Real Business Cycles or Sticky Prices? The Impact of Technology Shocks on US Manufacturing

Jim Malley, Vito Muscatelli and Ulrich Woitek

Working Papers from Business School - Economics, University of Glasgow

Abstract: In this paper we estimate industry-level VAR models at the 4- digit SIC level for a number of US manufacturing sectors, using TFP series which allow for variable factor utilisation over the cycle. This allows us to verify the relevance of alternative theoretical modelling approaches to the business cycle. Our results support standard RBC models, and models of nominal rigidity based on sticky wages. They o er little support to dynamic general equilibrium models based on imperfect competition and sticky prices. Our results extend those obtained recently by other researchers using aggregate data.

JEL-codes: E32 O47 (search for similar items in EconPapers)
Date: 1999-07
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Citations: View citations in EconPapers (2)

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Working Paper: Real Business Cycles of Sticky Prices? The Impact of Technology Shocks on US Manufacturing (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:1999_15

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