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Business Cycle Accounting For Chile, Ludvig Söderling, Ina Simonovska

We investigate sources of economic fluctuations in Chile during 1998-2007 within the framework of a standard neoclassical growth model with time-varying frictions (wedges). We analyze the relative importance of efficiency, labor, investment, and government/trade wedges for business cycles in Chile. The purpose of this exercise is twofold: (i) focus the policy discussion on the most important wedges in the economy; and (ii) identify which broad class of models would present fruitful avenues for further research. We find that different wedges have played different roles during our studied period, but that the efficiency and labor wedges have had the greatest impact. We also compare our results with existing studies on Argentina, Brazil, and Mexico
Table of contents
Contents; I. Introduction; II. Analytical Framework; A. Calibration; Tables; 1. Parameter Estimates for Benchmark Economy; III. Results; Figures; 1. Benchmark Model-Measured Wedges; 2. Benchmark Model-Output Data and Efficiency Wedge; IV. Alternative Specification: Adjusting for Copper Investment; 2. Parameter Estimates for Alternative Economy; 3. Alternative Model-Measured Wedges; 4. Alternative Model-Output Data and Efficiency Wedge; 5. Alternative Model-Investment Data and Efficiency Wedge; 6. Alternative Model-Hours Data and Efficiency Wedge; V. Conclusion and Policy Recommendations
Literary form
non fiction
Description based upon print version of record
Physical description
1 online resource (30 p.)
Specific material designation
Form of item

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