Accounting for Japanese Business Cycles: a Quest for Labor Wedges
No 09-E-28, IMES Discussion Paper Series from Institute for Monetary and Economic Studies, Bank of Japan
A key feature of the Japanese business cycles over the 1980- 2007 period is that the fluctuation of total hours worked leads the fluctuation of output. A canonical real business cycle model cannot account for this fact. This paper uses the business cycle accounting method introduced by Chari, Kehoe and McGrattan (2007) and shows that labor market distortions are important in accounting for the this feature of the Japanese labor supply fluctuation. I further discuss fundamental economic shocks that manifest themselves as labor wedges and assess their impacts on labor fluctuation.
Keywords: Business Cycle Accounting; Japanese Labor Market (search for similar items in EconPapers)
JEL-codes: E13 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-dge and nep-mac
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Journal Article: Accounting for Japanese Business Cycles: A Quest for Labor Wedges (2011)
Working Paper: Accounting for Japanese Business Cycles: A Quest for Labor Wedges (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ime:imedps:09-e-28
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