Slow Recoveries: A Structural Interpretation

By Jordi Galí, Frank Smets, Raf Wouters. 2012

137 citations recorded by the source corpus.

An analysis of the performance of GDP, employment and other labor market variables following the troughs in postwar U.S. business cycles points to much slower recoveries in the three most recent episodes, but does not reveal any significant change over time in the relation between GDP and employment. This leads us to characterize the last three episodes as slow recoveries, as opposed to jobless recoveries. We use the estimated New Keynesian model in Gali-Smets-Wouters (2011) to provide a structural interpretation for the slower recoveries since the early nineties.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/9dc4e2df6419c4e395e43e53c231be1f5ebc9cff

Citations in the corpus

• Job Polarization and Jobless Recoveries (2020, unknown): “…in terms of point estimates, the fall in the strength of output recoveries across time periods 15Note that this measure differs from that of Gali, Smets, and Wouters (2012), who simply consider employment and output growth in the four quarters after recession and ask whether these have…”
• Okun's Law: Fit at Fifty? (2013, unknown): “Gali et al. (2012) discuss possible explanations for slow growth, such as the zero bound that has constrained monetary policy since 2008.”
• CAPITAL DESTRUCTION, JOBLESS RECOVERIES, AND THE DISCIPLINE DEVICE ROLE OF UNEMPLOYMENT (2012, unknown): “By estimating a new-Keynesian model, Gali et al. (2011) come to the conclusion that the slower recoveries are not attributable to structural changes in the US economy, but rather due to the different contribution of the “recovery shocks” (i.e., shocks experienced during the recoveries themselves…”