search query: @indexterm Sectoral models / total: 10
reference: 9 / 10
| Author: | Lucke, B. |
| Title: | Productivity shocks in a sectoral real business cycle model for West Germany |
| Journal: | European Economic Review
1998 : FEB, VOL. 42:2, p. 311-327 |
| Index terms: | BUSINESS CYCLES PRODUCTIVITY GERMANY SECTORAL MODELS |
| Language: | eng |
| Abstract: | If aggregate output is driven by integrated productivity shocks, then sectoral output series should display few, if any, co-integrating relationships. Similarly, serial correlation co-feature should be a rare occurence. These conjectures are confirmed in an analysis with West German data. However, productivity shocks, identified and tested in an extended version of the Long and Plosser real business cycle model, do not contain enough unit roots to account for those found in the output series. Hence, productivity shocks can at best provide a partial explanation for aggregate output fluctuations. |
SCIMA