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Technological Change and the Roaring Twenties: A Neoclassical Perspective

Author Info

Listed author(s):
  • Sharon Harrison

    ()

    (Department of Economics, Barnard College, Columbia University)

  • Mark Weder

    ()

    (School of Economics, University of Adelaide)

Abstract

In this paper, we 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 significant technological progress during this period, fed by innovations in manufacturing and the widespread introduction of electricity. Our estimated total factor productivity series generate artificial model output that shows high conformity with the data: the model economy successfully replicates the boom years from 1922-1929.

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File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2009-29.pdf
File Function: 2009
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Paper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2009-29.

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Length: 27 pages
Date of creation: 2009
Handle: RePEc:adl:wpaper:2009-29
Contact details of provider: Postal:
Adelaide SA 5005

Phone: (618) 8303 5540
Web page: http://www.economics.adelaide.edu.au/

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Keywords: real business cycles; Roaring Twenties;

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Find related papers by JEL classification:
  • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
  • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-

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