ETD

Digital archive of theses discussed at the University of Pisa

 

Thesis etd-04262016-113334


Thesis type
Tesi di laurea magistrale
Author
JIN, MEINA
URN
etd-04262016-113334
Thesis title
A comparison of the Italian and U.S. business cycle accounting
Department
ECONOMIA E MANAGEMENT
Course of study
ECONOMICS
Supervisors
relatore Moneta, Alessio
Keywords
  • business cycle accounting
Graduation session start date
09/05/2016
Availability
Full
Summary
A comparison of the Italian and U.S. business cycle accounting
This thesis investigates the sources of economic fluctuations in U.S. and Italy during the recessions of 1982 (U.S.), 1992–1993 (Italy), and the global crisis starting in 2007 (U.S. and Italy). We study the relative importance of efficiency, labor, investment and government wedges for conducting business cycle accounting (BCA) using the simple method developed by Chari, Kehoe, and Mc Grattan (2007). This thesis constructs a consistent set of quarterly U.S. and Italian data of the 1980–2013 sample period and compares the properties of the U.S. and Italian business cycles. We document some common effects and important differences in the adjustment of dynamic business recession and global financial crisis periods between the two countries. In the recession periods, both in U.S. and in Italy the efficiency and labor wedges played primary roles in the business cycle fluctuations. In both countries the investment wedge is negative correlated with output observations, while the efficiency and labor wedges move together with output fluctuation. However, during the financial crisis period in Italy, the adjustment to the efficiency wedge is the most important source of output fluctuation, while that of the U.S. is best explained by the investment and labor wedges. Further, we formulate, estimate, and analyze the Chari et al.(2007) model. Our results suggest that the structure of fiscal and monetary policies requires the implementation efficiency measurement to adjust productivity and bring a surge in output of Italy.
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