Arbeitspapier

Great Volatility and Great Moderation

We investigate the sources of the great changes in GDP volatility observed from 1966 to 2000. We develop a general equilibrium model and calibrate it to US data in order to characterize the contribution of micro level productivity shocks, inter-sectoral linkages and households' behavior to aggregate volatility. Our results show that changes in sectoral volatility played an important role in shaping volatility at the aggregate level. Moreover, asymmetries in the economic structure sometimes had an amplifying, and other times a dampening effect on aggregate volatility. We show that the different impact depends on the time-varying correlation between sectoral volatilities and the relative importance of specific sectors in the economy.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 7272

Klassifikation
Wirtschaft
Business Fluctuations; Cycles
Macroeconomics: Production
General Equilibrium and Disequilibrium: Input-Output Tables and Analysis
Thema
business cycle
micro-macro volatility
input-output network

Ereignis
Geistige Schöpfung
(wer)
Grazzini, Jakob
Massaro, Domenico
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Grazzini, Jakob
  • Massaro, Domenico
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2018

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