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Technological Change and the Roaring Twenties: A Neoclassical Perspective

Author

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  • 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.

Suggested Citation

  • Sharon Harrison & Mark Weder, 2009. "Technological Change and the Roaring Twenties: A Neoclassical Perspective," School of Economics and Public Policy Working Papers 2009-29, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2009-29
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    References listed on IDEAS

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    Cited by:

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    2. Mark Weder, 2010. "Economic Crisis and Economic Theory," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 7-12, September.
    3. Peter A.G. van Bergeijk, 2019. "Deglobalization 2.0," Books, Edward Elgar Publishing, number 18560, December.
    4. Hajkowicz, Stefan & Sanderson, Conrad & Karimi, Sarvnaz & Bratanova, Alexandra & Naughtin, Claire, 2023. "Artificial intelligence adoption in the physical sciences, natural sciences, life sciences, social sciences and the arts and humanities: A bibliometric analysis of research publications from 1960-2021," Technology in Society, Elsevier, vol. 74(C).
    5. Ristolainen, Kim & Roukka, Tomi & Nyberg, Henri, 2024. "A thousand words tell more than just numbers: Financial crises and historical headlines," Journal of Financial Stability, Elsevier, vol. 70(C).
    6. Hajkowicz, Stefan & Naughtin, Claire & Sanderson, Conrad & Schleiger, Emma & Karimi, Sarvnaz & Bratanova, Alexandra & Bednarz, Tomasz, 2022. "Artificial intelligence for science – adoption trends and future development pathways," MPRA Paper 115464, University Library of Munich, Germany.

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    More about this item

    Keywords

    real business cycles; Roaring Twenties;

    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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