The Great Moderation: Inventories, Shocks or Monetary Policy?

The Great Moderation: Inventories, Shocks or Monetary Policy?

This paper presents a New Keynesian DSGE model with inventory holding firms. The model distinguishes between goods and materials, for both production as well as for inventories. The more detailed treatment of inventory holdings offers new insights into the determinants of business cycles before and...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:MAGKS - Joint Discussion Paper Series in Economics (Band 48-2013)
1. Verfasser: Förster, Marcel
Format: Artikel
Sprache:Englisch
Veröffentlicht: Philipps-Universität Marburg 2013
Schlagworte:
DSGE model, Business Cycles
Inventories
Great Moderation
Wirtschaft
Bayesian Estimation
Economics
Online Zugang:PDF-Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
Beschreibung
Zusammenfassung:This paper presents a New Keynesian DSGE model with inventory holding firms. The model distinguishes between goods and materials, for both production as well as for inventories. The more detailed treatment of inventory holdings offers new insights into the determinants of business cycles before and during the Great Moderation. Via Bayesian estimation we determine the distributions of the parameters for U.S. data for two subsamples. Our results show that impulse responses change significantly in terms of magnitude and persistence over time. Shocks in the labor market have gained importance since the Great Moderation and they explain the volatility of many variables. We reject the hypothesis of better inventory management and improved monetary policy as explanations for the Great Moderation. Instead, labor supply developments and changes in cost associated with capital play a key role for the reduced fluctuations.
ISSN:1867-3678
DOI:10.17192/es2024.0210

Ähnliche Einträge