2013
DOI: 10.2139/ssrn.2216790
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Growth Trends and Cycles in the American Postwar Period, with Implications for Policy

Abstract: Do all types of demand have the same effect on output? To answer this question, I estimate a cointegrated vector autoregressive (VAR) model of consumption, investment, and government spending on US data, 1955US data, -2007. I find that: (1) economic growth can be decomposed into a short-run (transitory) cycle gravitating around a long-run (permanent) trend made of consumption shocks and government spending; (2) the estimated fluctuations are investment dominated, they coincide remarkably with the business cyc… Show more

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Cited by 2 publications
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