A neoclassical perspective on Switzerland's 1990s stagnation

Arbeitspapier

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%.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 18-18

Classification and Topics

• Classification: Wirtschaft ; General Aggregative Models: Neoclassical ; Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy: General (includes Measurement and Data) ; Business Fluctuations; Cycles ; Studies of Particular Policy Episodes
• Subject: Business cycle accounting ; housing crises ; stagnation ; Switzerland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stucki, Yannic ; Thomet, Jacqueline
• Event: Veröffentlichung
• (who): University of Bern, Department of Economics
• (where): Bern
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/204918
• Last update: 10.03.2025, 11:44 AM CET