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Output fluctuations in the United States: what has changed since the early 1980s?

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  • Margaret M. McConnell
  • Gabriel Perez Quiros

Abstract

We document a structural break in the volatility of U.S. GDP growth in the first quarter of 1984, and provide evidence that this break emanates from a reduction in the volatility of durable goods production. We find no evidence of increased stability in the nondurables, services or structures sectors of the economy. In addition, no other G7 country experienced a contemporaneous reduction in output volatility. Finally, we show that the reduction in durables volatility corresponds to a decline in the share of durable goods accounted for by inventories

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Bibliographic Info

Paper provided by Federal Reserve Bank of New York in its series Staff Reports with number 41.

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Date of creation: 1998
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Handle: RePEc:fip:fednsr:41

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Keywords: Gross domestic product ; Production (Economic theory);

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  1. Do U.S. Households Benefit from the Great Moderation?
    by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2014-08-13 19:17:41
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