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| Author: | Lindé, J. |
| Title: | Swedish postwar business cycles: generated abroad or at home? |
| Journal: | Scandinavian Journal of Economics
2004 : VOL. 106:4, p. 623-645 |
| Index terms: | Business cycles Fiscal policy Open economy Sweden |
| Language: | eng |
| Abstract: | This article examines the relative importance of foreign and domestic shocks for the Swedish postwar business cycle in a neoclassical stochastic growth model of a small open economy. Since recent research has shown that fiscal policy shocks may be important for business cycles, previous work is extended in the literature by allowing for stochastic fiscal policy. It is found that the introduction of fiscal policy improves the empirical fit of the model, although not significantly so when hours worked are detrended with the HP filter. |
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