Historical Decomposition of Aggregate Demand and Supply Shocks in a Small Macro Model

Fackler, James S.; McMillint, W. Douglas

doi:10.2307/1060784

Cited by 29 publications

(19 citation statements)

References 19 publications

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“…Alternative policy rules like an x-percent rule for money growth without feedback are evaluated in Fackler and McMillin (1998).…”

Section: Discussionmentioning

confidence: 99%

Evaluating Monetary Policy Options

Fackler¹,

McMillin²

2002

Southern Economic Journal

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We present a procedure for evaluating ex ante the effects of alternative paths of a monetary policy tool (the federal funds rate in our illustrations) on output and the price level within a variant of a widely-used vector autoregressive model of the U.S. economy.This exercise is a supplement to, or even an alternative to, analysis that relies on a particular structural model. Illustrations of the method are provided by evaluating the effects of changes in the funds rate target. Additionally, the Taylor rule is used to generate target funds rates for different target inflation rates, and the effects of these are evaluated.

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“…Alternative policy rules like an x-percent rule for money growth without feedback are evaluated in Fackler and McMillin (1998).…”

Section: Discussionmentioning

confidence: 99%

Evaluating Monetary Policy Options

Fackler¹,

McMillin²

2002

Southern Economic Journal

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“…In order to estimate the historical decomposition of the variables in the model, we follow, for instance, Flacker and McMillin (1998) and express (12) as:…”

Section: Data and The Econometric Modelmentioning

confidence: 99%

Supply and demand shocks and the growth of the Brazilian agriculture

Barros¹,

Spolador²,

Bacchi³

2009

Rev. Bras. Econ.

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In the last decades the Brazilian agriculture had a strong growth. Our hypothesis is that most of that growth may be attributed to two general factors, which may conveniently be related to two types of shocks acting upon agriculture: demand-related and technological supply-related shocks. Demand shocks are originated both from domestic economy and from external markets. We use Blanchard and Quah (1989) type of economic model to test the relative importance of supply and demand shocks on Brazilian agricultural growth. Our results indicate that supply and demand shocks have permanent effects upon agricultural output and prices. We estimate that the agricultural output growth in Brazil is attributed in large proportion to yield increases and that integration to international markets was important to assure the profitability of continuous use of new technology that led to yield improvements. This is why exchange rate plays is relevant in explaining the performance of the Brazilian agriculture. We anticipate that, if investments in science and technology are maintained and international integration expanded, Brazil will be able to substantially increase its supply of agricultural products both for domestic and foreign markets. Nas últimas décadas a agricultura brasileira teve um forte crescimento.

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“…However, the base projection is unlikely to coincide with Xt+j, because in the time period from / + 1 to r + y "new" structural innovations hit the system. By their very nature these shocks are ^^^ See, e.g., Fackler and McMillin (1997) for a detailed description of the historical decomposition technique.…”

Section: The Historical Decomposition Techniquementioning

confidence: 99%

Monetary Policy and the German Unemployment Problem in Macroeconomic Models

2005

Kieler Studien - Kiel Studies

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Historical Decomposition of Aggregate Demand and Supply Shocks in a Small Macro Model

Cited by 29 publications

References 19 publications

Evaluating Monetary Policy Options

Evaluating Monetary Policy Options

Supply and demand shocks and the growth of the Brazilian agriculture

Monetary Policy and the German Unemployment Problem in Macroeconomic Models

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