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16:30 | Macro Research Seminar
Author: Pedro Brinca
Abstract: I argue that, in the context of business cycle accounting model introduced by Chari et al. (2007), total factor productivity and distortions to the leisure-labor choice are the most promising sources of business cycles to be modeled, for a panel of 22 OECD countries from 1970 to 2011. Distortions to the savings decision hold little quantitative or qualitative relevance. NBER recessions, the distance between countries and their degree of openness to trade are shown to contain information with regard to the distortions, stressing the importance of international mechanisms of transmission for business cycles.
Full Text: “Distortions in the Neoclassical Growth Model: A Cross-Country Analysis”
