Ultimate Sources of Aggregate Variability
24 Pages Posted: 15 Mar 2007 Last revised: 13 Feb 2023
Date Written: 1987
Abstract
What, ultimately, is different from quarter to quarter or year to year that accounts for the fact that macroeconomic variables change over these intervals? That is, which are the biggest ultimate sources, in terms we may say of tastes, technology, endowments, government policy, industrial organization, labor-management relations, speculative behavior, or the like, that change to cause this variability? There are a bewildering variety of claims in the literature for such ultimate sources. Far fewer efforts have been made to give a breakdown of the variance of macroeconomic aggregates by source. The two notable such breakdowns to date are by Bigou (1929) and Fair (1987). The nature of the evidence for such breakdowns is discussed here, and the possibility that a partial breakdown may be well-determined is put forward. An unsuccessful attempt is made to detect a component of macroeconomic fluctuations that is due to the weather.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Can News About the Future Drive the Business Cycle?
By Nir Jaimovich and Sergio T. Rebelo
-
Can News About the Future Drive the Business Cycle?
By Nir Jaimovich and Sergio T. Rebelo
-
Stock Prices, News and Economic Fluctuations
By Paul Beaudry and Franck Portier
-
Stock Prices, News and Economic Fluctuations
By Paul Beaudry and Franck Portier
-
An Exploration into Pigou's Theory of Cycles
By Paul Beaudry and Franck Portier
-
Monetary Policy and Stock Market Boom-Bust Cycles
By Lawrence J. Christiano, Cosmin L. Ilut, ...
-
Time-Separable Preference and Intertemporal-Substitution Models of Business Cycles
By Robert J. Barro and Robert G. King
-
Monetary Policy and Stock Market Booms
By Lawrence J. Christiano, Cosmin L. Ilut, ...
-
Monetary Policy and Stock Market Booms
By Lawrence J. Christiano, Cosmin L. Ilut, ...