Bubbles over the U.S. business cycle: A macroeconometric approach

Autor:	Marc-André Luik, Dennis Wesselbaum
Rok vydání:	2014
Předmět:	Economics and Econometrics Bubble Capital (economics) New Keynesian economics Economics Government debt Business cycle Monetary economics Variance (accounting)
Zdroj:	Journal of Macroeconomics. 40:27-41
ISSN:	0164-0704
DOI:	10.1016/j.jmacro.2014.02.005
Popis:	This paper builds a New Keynesian model with financial frictions and monetary and fiscal rules for the United States. We incorporate a rational bubble process in the (relative) price of capital. Our results show that bubbles account for a significant amount of variance in key macroeconomic variables and are as important as investment-specific shocks in explaining total variation. Further, we show that a bursting bubble creates large and long-lasting real effects. In particular, we find large effects on government debt that persist for several years.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::e3e58722e94f5b7e1648b6f43b83b7f6 https://doi.org/10.1016/j.jmacro.2014.02.005 Zobrazit plný text záznamu Full Text from ScienceDirect