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Technological Change and the Roaring Twenties: A Neoclassical Perspective

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  • Sharon Harrison

    ()
    (Barnard College, Columbia University)

  • Mark Weder

    ()
    (University of Adelaide)

Abstract

Annualized output growth in the United States was highest during the 1920s, as compared to any other of Field’s (2003, 2009) growth cycles. This motivates us to address the causes of the Roaring Twenties in the United States. In particular, we use a version of the real business cycle model to test the hypothesis that an extraordinary pace of productivity growth was the driving factor. Our motivation comes from the abundance of evidence of signi cant technological progress during this period, fed by innovations in manufacturing and the widespread introduction of electricity. Our estimated total factor productivity series generate arti cial model output that shows high conformity with the data: the model economy successfully replicates the boom years from 1922-1929.

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Bibliographic Info

Paper provided by Barnard College, Department of Economics in its series Working Papers with number 0902.

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Length: 31 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:brn:wpaper:0902

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Keywords: Real Business Cycles; Roaring Twenties.;

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