How well can business cycle accounting account for business cycles?

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

The business cycle accounting method introduced by Chari. Kehoe and McGrattan (2007) is a useful tool to decompose business cycle fluctuations into their contributing factors, However, the model estimated by the maximum likelihood method cannot replicate business cycle moments computed from data. Moment-based estimation might be an attractive alternative if the purpose of the research is to study business cycle properties such as volatility, persistence and cross-correlation of variables instead of a specific business cycle episode.

Original languageEnglish
Pages (from-to)1774-1784
Number of pages11
JournalEconomics Bulletin
Volume32
Issue number2
Publication statusPublished - 2012
Externally publishedYes

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Business cycles
Business cycle accounting
Factors
Business cycle fluctuations
Volatility persistence
Maximum likelihood
Cross-correlation

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

How well can business cycle accounting account for business cycles? / Otsu, Keisuke.

In: Economics Bulletin, Vol. 32, No. 2, 2012, p. 1774-1784.

Research output: Contribution to journalArticle

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