Productivity Growth, Consumer Confidence and the Business Cycle

Jean-Pierre Danthine, John B. Donaldson and Thore Johnsen

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

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 labor productivity growth differ from one where labor productivity is constant? 2.What is the impact on major macro indicators of a one-time change in labor 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; labor productivity; consumption (search for similar items in EconPapers)
JEL-codes: E1 E2 E3 (search for similar items in EconPapers)
Pages: 36 pages
Date: 1997-09
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Citations: View citations in EconPapers (10)

Published in European Economic Review, vol.42, 1998, pp. 1113-1140

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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 (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:9711

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