IDEAS home Printed from https://ideas.repec.org/p/cvs/starer/97-19.html
   My bibliography  Save this paper

Persistence of Business Cycles in Multisector RBC Models

Author

Listed:
  • Benhabib, Jess
  • Perli, Roberto
  • Sakellaris, Plutarchos

Abstract

In this paper we explore whether the changing composition of output in response to technology shocks can play a significant role in the propagation of shocks over time. For this purpose we study two multisector RBC models, with two and a three sectors. We find that, whereas the two sectors model requires a high intertemporal elasticity of substitution fo consumption to match the dynamic properties of the US data, the three sector model has a strong propagation mechanism under conventional parameterizations, as long as the factor intensities in the three sectors are different enough.

Suggested Citation

  • Benhabib, Jess & Perli, Roberto & Sakellaris, Plutarchos, 1997. "Persistence of Business Cycles in Multisector RBC Models," Working Papers 97-19, C.V. Starr Center for Applied Economics, New York University.
    • Handle: RePEc:cvs:starer:97-19
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Caterina Mendicino, 2006. "Credit Market and Macroeconomic Volatility," 2006 Meeting Papers 317, Society for Economic Dynamics.
    2. Nishimura, Kazuo & Venditti, Alain, 2002. "Intersectoral Externalities and Indeterminacy," Journal of Economic Theory, Elsevier, vol. 105(1), pages 140-157, July.
    3. Otrok, Christopher, 2001. "On measuring the welfare cost of business cycles," Journal of Monetary Economics, Elsevier, vol. 47(1), pages 61-92, February.
    4. David N. DeJong & Beth F. Ingram, 2001. "The Cyclical Behavior of Skill Acquisition," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(3), pages 536-561, July.
    5. Mathä, Thomas Y. & Pierrard, Olivier, 2011. "Search in the product market and the real business cycle," Journal of Economic Dynamics and Control, Elsevier, vol. 35(8), pages 1172-1191, August.
    6. Alison Butler & Michael R. Pakko, 1998. "R&D spending and cyclical fluctuations: putting the \"technology\" in technology shocks," Working Papers 1998-020, Federal Reserve Bank of St. Louis.
    7. Weder, Mark, 2000. "Can Habit Formation Solve the Consumption Anomaly in the Two-Sector Business Cycle Model?," Journal of Macroeconomics, Elsevier, vol. 22(3), pages 433-444, July.
    8. Nigar Hashimzade & Salvador Ortigueira, 2004. "Endogenous Business Cycle with Search in the Labour Market," Money Macro and Finance (MMF) Research Group Conference 2004 78, Money Macro and Finance Research Group.
    9. Stefano Bosi & Francesco Magris & Alain Venditti, 2005. "Multiple equilibria in a cash‐in‐advance two‐sector economy," International Journal of Economic Theory, The International Society for Economic Theory, vol. 1(2), pages 131-149, June.
    10. Accolley, Delali, 2016. "Physical and Human Capital over the Business Cycle," MPRA Paper 71017, University Library of Munich, Germany.
    11. Stefano Bosi & Francesco Magris & Alain Venditti, 2003. "Indeterminacy in a Cash-in-Advance Two-Sector Economy," Documents de recherche 03-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    12. Veroude, Alexandra, 2012. "The Role of Mining in an Australian Business Cycle Model," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124473, Australian Agricultural and Resource Economics Society.
    13. Nishimura, Kazuo & Venditti, Alain, 2004. "Indeterminacy And The Role Of Factor Substitutability," Macroeconomic Dynamics, Cambridge University Press, vol. 8(4), pages 436-465, September.

    More about this item

    Keywords

    MACROECONOMICS ; BUSINESS CYCLES ; ECONOMIC GROWTH;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cvs:starer:97-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anne Stubing (email available below). General contact details of provider: https://edirc.repec.org/data/aenyuus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.