Year: 2003
Type: preprint
Abstract: Standard macroeconomic models that assume an exogenous stochastic process for multifactor productivity offer the interpretation that recessions are the result of ”bad news ” (technological regress) and expansions are the result of ”good news” (technological advancement). The view taken here is that both expansions and recessions are the result of ”good news ” in the sense that in both cases, aggregate production possibilities have increased. Recessions can be thought of as the Standard neoclassical models of economic fluctuations often rely on an exogenous autoregressive process for multifactor productivity. The interpretation is that recessoins are the result of a temporary decline in productivity while expansions are the result of a temporary increase
Author: John Stiver
Institution: University of Connecticut
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1582745878