Technological shocks mechanism on Macroeconomic Variables: A Dynamic Stochastic General Equilibrium (DSGE) approach

Eric Bondzie, Gabriel Obed Fosu and Ernest Obu-Cann

MPRA Paper from University Library of Munich, Germany

Abstract: As Ghana assumes a position of oil producer and middle-income country, it must learn to effectively deal with the related pressures from shocks. We analyze the effects of productivity shocks on Ghana’s total output using the multi-sector dynamic stochastic general equilibrium (DSGE) model. It was actualized that a productivity shock results in a temporary shrinkage in the final goods sectors due to the reallocation of labour from the final and intermediate goods sectors. We demonstrated that technological shock induces an initial fall in marginal cost of production but later rises to reach equilibrium.

Keywords: DSGE models; Economic growth; Technological shocks (search for similar items in EconPapers)
JEL-codes: C61 F43 O33 (search for similar items in EconPapers)
Date: 2013-10, Revised 2014-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Journal of Research in Humanities and Social Science 2.2(2014): pp. 10-20

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:69286

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