Business-Cycle Anatomy

By George-Marios Angeletos, F. Collard, Harris Dellas. The American Economic Review, 2018

159 citations recorded by the source corpus.

We propose a new strategy for dissecting the macroeconomic time series, provide a template for the business-cycle propagation mechanism that best describes the data, and use its properties to appraise models of both the parsimonious and the medium-scale variety. Our findings support the existence of a main business-cycle driver but rule out the following candidates for this role: technology or other shocks that map to TFP movements; news about future productivity; and inflationary demand shocks of the textbook type. Models aimed at accommodating demand-driven cycles without a strict reliance on nominal rigidity appear promising. (JEL C22, E10, E32)

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/e42ee88a74b8969666749b1bd9fbaab5ee7dddb8

Citations in the corpus

• What's Up with the Phillips Curve? (2020, unknown): “(2019) and Angeletos et al. (2019).(6) This approach does not attempt to pin down the precise identity of the structural disturbances driving fluctuations, as in more typical structural VARs.”