A neoclassical perspective on Switzerland s 1990s stagnation

Yannic Stucki and Jacqueline Thomet

Diskussionsschriften from Universitaet Bern, Departement Volkswirtschaft

Abstract: We study Switzerland s 1990s growth weakness through the lens of the business cycle accounting framework by Chari, Kehoe, and McGrattan (2007). Our main result is that weak productivity growth cannot account for the experienced stagnation. Rather, the stagnation is explained by factors that made labor and investment expensive. We show that an increase in labor income taxes and financial frictions are plausible causes. Holding these factors constant, counterfactual real annualized output growth over the 1992Q1 1996Q4 period is 1.93%, compared to a realized growth of 0.35%.

Keywords: Business cycle accounting; housing crises; stagnation; Switzerland (search for similar items in EconPapers)
JEL-codes: E13 E20 E32 E65 (search for similar items in EconPapers)
Date: 2018-06
New Economics Papers: this item is included in nep-dge and nep-mac
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Related works:
Journal Article: A neoclassical perspective on Switzerland’s 1990s stagnation (2021)
Working Paper: A neoclassical perspective on Switzerland's 1990s stagnation (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ube:dpvwib:dp1818

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