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Post Reunification Economic Fluctuations in Germany: A Real Business Cycle Interpretation

Listed author(s):
  • Michael A. Flor

    ()

We consider the cyclical properties of the German economy prior and after reunification in 1990 from the perspective of a real business cycle model. The model provides the framework for the selection and consistent measurement of the variables whose time series properties characterize the cycle. Simulations of the calibrated model reveal the model's potential to interpret the data. Major findings are that: i) the volatility of most aggregate time series has not changed significantly between the two time periods, ii) despite many conceptual differences between the European and the U.S. System of Accounts, the calibrated parameter values for the German economy are within the range of values usually employed in the real business cycle literature, iii) the model is closer to the data for the time period prior to reunification.

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File URL: http://www.wiwi.uni-augsburg.de/vwl/institut/paper/324.pdf
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Paper provided by Universitaet Augsburg, Institute for Economics in its series Discussion Paper Series with number 324.

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Length: pages
Date of creation: Apr 2014
Handle: RePEc:aug:augsbe:0324
Contact details of provider: Postal:
Universitaetsstrasse 16, D-86159 Augsburg, Germany

Phone: +49 821 598 4060
Fax: +49 821 598 4217
Web page: http://www.wiwi.uni-augsburg.de/vwl/institut
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