Differences in Response to Productivity Shock Depending on Economic Development Stages

Differences in Response to Productivity Shock Depending on Economic Development Stages Int Adv Econ Res (2018) 24:107–108 https://doi.org/10.1007/s11294-018-9670-3 RESEARCH NOTE Differences in Response to Productivity Shock Depending on Economic Development Stages Inyong Shin Published online: 1 February 2018 International Atlantic Economic Society 2018 . . JEL E30 O10 O40 Previous business cycle studies (e.g., Kydland and Prescott, Econometrica, 1982; Hansen, Journal of Monetary Economics, 1985; King et al. Journal of Monetary Economics, 1988) have analyzed the response of economic variables to productivity shocks when these shocks occur in the long-run steady state. However, if many countries are still on a transitional path, it would be more appropriate for those countries to be analyzed on their transitional path rather than in this steady state which is still unreachable. We became interested in analyzing productivity shocks that occur along the transitional path, because most countries do not reach a steady state except for a few developed countries. We found that the response of economic variables to an exoge- nous total factor productivity shock was state-dependent. We used the standard real business cycle (RBC) model with a log-log utility function and Cobb-Douglas production function. We also used the following well-known parameter values: capital share = 1/3, discount factor = 0.99, depreciation rate = http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Advances in Economic Research Springer Journals

Differences in Response to Productivity Shock Depending on Economic Development Stages

Loading next page...
 
/lp/springer_journal/differences-in-response-to-productivity-shock-depending-on-economic-gbSYjTeMrD
Publisher
Springer US
Copyright
Copyright © 2018 by International Atlantic Economic Society
Subject
Economics; Economics, general; Macroeconomics/Monetary Economics//Financial Economics; International Economics; Microeconomics; Economic Growth
ISSN
1083-0898
eISSN
1573-966X
D.O.I.
10.1007/s11294-018-9670-3
Publisher site
See Article on Publisher Site

Abstract

Int Adv Econ Res (2018) 24:107–108 https://doi.org/10.1007/s11294-018-9670-3 RESEARCH NOTE Differences in Response to Productivity Shock Depending on Economic Development Stages Inyong Shin Published online: 1 February 2018 International Atlantic Economic Society 2018 . . JEL E30 O10 O40 Previous business cycle studies (e.g., Kydland and Prescott, Econometrica, 1982; Hansen, Journal of Monetary Economics, 1985; King et al. Journal of Monetary Economics, 1988) have analyzed the response of economic variables to productivity shocks when these shocks occur in the long-run steady state. However, if many countries are still on a transitional path, it would be more appropriate for those countries to be analyzed on their transitional path rather than in this steady state which is still unreachable. We became interested in analyzing productivity shocks that occur along the transitional path, because most countries do not reach a steady state except for a few developed countries. We found that the response of economic variables to an exoge- nous total factor productivity shock was state-dependent. We used the standard real business cycle (RBC) model with a log-log utility function and Cobb-Douglas production function. We also used the following well-known parameter values: capital share = 1/3, discount factor = 0.99, depreciation rate =

Journal

International Advances in Economic ResearchSpringer Journals

Published: Feb 1, 2018

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off