Medium-term fluctuations and the "Great Ratios" of economic growth
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
Evidence for the OECD countries show that the “great ratios”, such as the unemployment rate, factor shares, Tobin’s q and the investment-capital ratio, fluctuate significantly on medium-term frequencies of 10-40 years duration. To explain these medium-term fluctuations, we establish a macro-dynamic model where the q-theory of investment is combined with sluggish real-wage adjustment in the labour market. For plausible values of the elasticity of factor substitution real wage sluggishness creates damped internal oscillations in the endogenous variables. Thereby hump-shaped responses to a variety of shocks arise.
Originalsprog | Engelsk |
---|---|
Tidsskrift | Journal of Macroeconomics |
Vol/bind | 49 |
Sider (fra-til) | 149-176 |
Antal sider | 28 |
ISSN | 0164-0704 |
DOI | |
Status | Udgivet - 10 jul. 2016 |
- Det Samfundsvidenskabelige Fakultet
Forskningsområder
ID: 164572558