Portier, F;
Beaudry, P;
Galizia, D;
(2020)
Putting the Cycle Back into Business Cycle Analysis.
American Economic Review
, 110
(1)
pp. 1-47.
10.1257/aer.20190789.
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Abstract
Are business cycles mainly a response to persistent exogenous shocks, or do they instead reflect a strong endogenous mechanism which produces recurrent boom-bust phenomena? In this paper we present evidence in favor of the second interpretation and we highlight the set of key elements that influence our answer. The elements that tend to favor this type of interpretation of business cycles are: (i) slightly extending the frequency window one associates with business cycle phenomena, (ii) allowing for strategic complementarities across agents that arise due to financial frictions, and (iii) allowing for a locally unstable steady state in estimation. JEL: E3, E32, E24
| Type: | Article |
|---|---|
| Title: | Putting the Cycle Back into Business Cycle Analysis |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1257/aer.20190789 |
| Publisher version: | https://doi.org/10.1186/1744-8603-8-29 |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Business Cycle, Limit Cycle |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10077922 |
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