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The Great Depression in Belgium from a Neoclassical Perspective

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  • Luca Pensieroso

    (Universite Catholique de Louvain)

Abstract

This article casts the Belgian Great Depression of the 1930s within a dynamic stochastic general equilibrium (DSGE) framework. The results show that a DSGE model with total factor productivity and monetary shocks, coupled with sticky nominal wages a la Taylor is able to account reasonably well for most of the data on the Depression, but it overestimates real wages. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2010.10.004
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Bibliographic Info

Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 14 (2011)
Issue (Month): 2 (Arpil)
Pages: 389-402

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Handle: RePEc:red:issued:07-112

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Related research

Keywords: Great Depression; Belgium; Sticky wages; Dynamic stochastic general equilibrium;

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References

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  18. Michel R. De Vroey & Luca Pensieroso, 2006. "Real Business Cycle Theory and the Great Depression: The Abandonment of the Abstentionist Viewpoint," The B.E. Journal of Macroeconomics, De Gruyter, vol. 0(1), pages 13.
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  21. Harold L. Cole & Lee E. Ohanian, 2004. "New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 779-816, August.
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