How Important Are Sectoral Shocks?
نویسنده
چکیده
I quantify the contribution of sectoral shocks to business cycle fluctuations in aggregate output. I develop and estimate a multi-industry general equilibrium model in which each industry employs the material and capital goods produced by other sectors. Using data on U.S. industries’ input prices and input choices, I find that the goods produced by different industries are complements to one another as inputs in downstream industries’production functions. These complementarities indicate that industry-specific shocks are substantially more important than previously thought, accounting for more than half of aggregate volatility.
منابع مشابه
Differences across the June , 2014 and December , 2015 versions of How Important Are Sectoral Shocks ?
While the main results– first, that industry-specific shocks are more important than previously thought, accounting for more than half of aggregate volatility, and second, that this difference arises from past papers’imposition of unitary elasticities of substitution– of the two versions of How Important Are Sectoral Shocks? are the same, the way in which I arrive at these results are suffi cie...
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