We study the dynamics of the manufacturing component of GDP. We first document that the output growth rate for the majority of sectors and their aggregates is different (asymmetric) in recessions and expansions. Compared to expansions, recessions are deeper deviations from trend and have shorter expected duration. This finding raises a basic question that we address in this paper. Which factors...

In this paper we explore the sectoral and aggregate implications of some endogeneization rules (i.e. on value-added and final demand) which have been common in the Leontief model and have been recently proposed in the Ghosh model. We detect that these rules may give rise in both models to some allegedly pathological behavior in the sense that sectoral or aggregate output, very often, may not fo...

This paper studies the state-dependent effects of shocks to distortionary tax rates in a dynamic stochastic general equilibrium (DSGE) model augmented with a number of real and nominal frictions. The tax output multiplier is defined as the change in output for a one dollar change in tax revenue caused by a shock to distortionary tax rates on consumption, labor income, or capital income. We find...

Generating effective employment opportunities is one of the principal challenges faced by development planners in Iran. If investment projects are undertaken on the basis of sectoral priorities in production and employment, the economic and social problems emanating from unemployment will be reduced, helping the Country’s process of development. In this paper, an attempt is made to identify key...

Applying Johansen cointegration test to U.S. annual data constructed from the EU KLEMS database, the paper documents that the productivities of consumption-goods and equipmentgoods sector are cointegrated. It confirms further, using the non-linear cointegration test framework developed by Kapetanios et al. (2006), that the cointegrating relation is non-linear. The cointegration of sectoral prod...