A simple decomposition of the variance of output growth across countries

Arbeitspapier

This paper outlines a simple regression-based method to decompose the variance of an aggregate time series into the variance of its components, which is then applied to measure the relative contributions of productivity, hours per worker, and employment to cyclical output growth across a panel of countries. Measured productivity contributes more to the cycle in Europe and Japan than in the United States. Employment contributes the largest proportion of the cycle in Europe and the United States (but not Japan), which is inconsistent with the idea that higher levels of employment protection in Europe dampen cyclical employment fluctuations.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 1703

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Business Fluctuations; Cycles
• Subject: Intensive margin ; extensive margin ; productivity ; business cycles ; variance decomposition ; Konjunktur ; Dekompositionsverfahren ; Varianzanalyse ; Produktivität ; Arbeitsproduktivität ; Arbeitszeit ; Konjunkturelle Arbeitslosigkeit ; Schätzung ; EU-Staaten ; Japan ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Reicher, Christopher Phillip
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/45868
• Last update: 10.03.2025, 11:45 AM CET