Advanced Search
MyIDEAS: Login to save this paper or follow this series

Accounting Spanish business cycles: What can be learned from past recessions?


Author Info

  • Jesús Rodríguez López

    (Department of Economics, Universidad Pablo de Olavide)

  • Mario Solís-García

    (Macalester College, St. Paul, USA)

Registered author(s):


    We apply the business cycle methodology proposed by Chari, Kehoe, and McGrattan (2007) to identify the sources of Spanish business fluctuations during two outstanding cyclical episodes: the recession alongside the inception of democracy on 1977, and the recession of 2008. We find that the labor wedge is the key element behind these fluctuations, and that both taxes and labor market institutions are likely behind the wedge movements. Our conclusion suggests that any model that tries to understand the causes of the recessions occurred in the last three decades should focus on the labor wedge. This conclusion holds regardless the framework assumes a closed economy or an open economy.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    File Function: First version, 2012
    Download Restriction: no

    Bibliographic Info

    Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 12.05.

    as in new window
    Length: 23 pages
    Date of creation: Sep 2012
    Date of revision:
    Handle: RePEc:pab:wpaper:12.05

    Contact details of provider:
    Postal: Carretera de Utrera km.1, 41013 Sevilla
    Phone: + 34 954 34 8913
    Fax: + 34 954 34 9339
    Web page:
    More information through EDIRC

    Related research

    Keywords: Business cycle accounting; efficiency wedge; labor wedge; investment wedge;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:


    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Labhard, Vincent & Wyplosz, Charles, 1996. "The New EMS: Narrow Bands inside Deep Bands," American Economic Review, American Economic Association, American Economic Association, vol. 86(2), pages 143-46, May.
    2. Kobayashi, Keiichiro & Inaba, Masaru, 2006. "Business cycle accounting for the Japanese economy," Japan and the World Economy, Elsevier, Elsevier, vol. 18(4), pages 418-440, December.
    3. Timothy Kehoe & Edward Prescott, 2002. "Data Appendix to Great Depressions of the Twentieth Century," Technical Appendices, Review of Economic Dynamics kehoe02, Review of Economic Dynamics.
    4. Ruy Lama, 2009. "Accounting for Output Drops in Latin America," IMF Working Papers, International Monetary Fund 09/67, International Monetary Fund.
    5. Timothy J. Kehoe & Edward C. Prescott (), 2007. "Great depressions of the twentieth century," Monograph, Federal Reserve Bank of Minneapolis, Federal Reserve Bank of Minneapolis, number 2007gdott.
    Full references (including those not matched with items on IDEAS)



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:pab:wpaper:12.05. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publicación Digital - UPO).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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