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...

Ful tanımlama

Kaydedildi:
Detaylı Bibliyografya
Yayımlandı:MAGKS - Joint Discussion Paper Series in Economics (Band 48-2013)
Yazar: Förster, Marcel
Materyal Türü: Makale
Dil:İngilizce
Baskı/Yayın Bilgisi: Philipps-Universität Marburg 2013
Konular:
DSGE model, Business Cycles
Inventories
Great Moderation
Wirtschaft
Bayesian Estimation
Economics
Online Erişim:PDF Tam Metin
Etiketler: Etiketle
Etiket eklenmemiş, İlk siz ekleyin!
Diğer Bilgiler
Özet: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

Benzer Materyaller