Medium-term fluctuations and the "Great Ratios" of economic growth

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Medium-term fluctuations and the "Great Ratios" of economic growth. / Groth, Christian; Madsen, Jakob B.

In: Journal of Macroeconomics, Vol. 49, 10.07.2016, p. 149-176.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Groth, C & Madsen, JB 2016, 'Medium-term fluctuations and the "Great Ratios" of economic growth', Journal of Macroeconomics, vol. 49, pp. 149-176. https://doi.org/10.1016/j.jmacro.2016.07.001

APA

Groth, C., & Madsen, J. B. (2016). Medium-term fluctuations and the "Great Ratios" of economic growth. Journal of Macroeconomics, 49, 149-176. https://doi.org/10.1016/j.jmacro.2016.07.001

Vancouver

Groth C, Madsen JB. Medium-term fluctuations and the "Great Ratios" of economic growth. Journal of Macroeconomics. 2016 Jul 10;49:149-176. https://doi.org/10.1016/j.jmacro.2016.07.001

Author

Groth, Christian ; Madsen, Jakob B. / Medium-term fluctuations and the "Great Ratios" of economic growth. In: Journal of Macroeconomics. 2016 ; Vol. 49. pp. 149-176.

Bibtex

@article{24c7d46b09dc41e58848bc5c05cacacf,
title = "Medium-term fluctuations and the {"}Great Ratios{"} of economic growth",
abstract = "Evidence for the OECD countries show that the “great ratios”, such as the unemployment rate, factor shares, Tobin{\textquoteright}s q and the investment-capital ratio, fluctuate significantly on medium-term frequencies of 10-40 years duration. To explain these medium-term fluctuations, we establish a macro-dynamic model where the q-theory of investment is combined with sluggish real-wage adjustment in the labour market. For plausible values of the elasticity of factor substitution real wage sluggishness creates damped internal oscillations in the endogenous variables. Thereby hump-shaped responses to a variety of shocks arise.",
keywords = "Faculty of Social Sciences, E32, G11, O41",
author = "Christian Groth and Madsen, {Jakob B.}",
note = "JEL Classification: E32; G11; O41",
year = "2016",
month = jul,
day = "10",
doi = "10.1016/j.jmacro.2016.07.001",
language = "English",
volume = "49",
pages = "149--176",
journal = "Journal of Macroeconomics",
issn = "0164-0704",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Medium-term fluctuations and the "Great Ratios" of economic growth

AU - Groth, Christian

AU - Madsen, Jakob B.

N1 - JEL Classification: E32; G11; O41

PY - 2016/7/10

Y1 - 2016/7/10

N2 - Evidence for the OECD countries show that the “great ratios”, such as the unemployment rate, factor shares, Tobin’s q and the investment-capital ratio, fluctuate significantly on medium-term frequencies of 10-40 years duration. To explain these medium-term fluctuations, we establish a macro-dynamic model where the q-theory of investment is combined with sluggish real-wage adjustment in the labour market. For plausible values of the elasticity of factor substitution real wage sluggishness creates damped internal oscillations in the endogenous variables. Thereby hump-shaped responses to a variety of shocks arise.

AB - Evidence for the OECD countries show that the “great ratios”, such as the unemployment rate, factor shares, Tobin’s q and the investment-capital ratio, fluctuate significantly on medium-term frequencies of 10-40 years duration. To explain these medium-term fluctuations, we establish a macro-dynamic model where the q-theory of investment is combined with sluggish real-wage adjustment in the labour market. For plausible values of the elasticity of factor substitution real wage sluggishness creates damped internal oscillations in the endogenous variables. Thereby hump-shaped responses to a variety of shocks arise.

KW - Faculty of Social Sciences

KW - E32

KW - G11

KW - O41

U2 - 10.1016/j.jmacro.2016.07.001

DO - 10.1016/j.jmacro.2016.07.001

M3 - Journal article

VL - 49

SP - 149

EP - 176

JO - Journal of Macroeconomics

JF - Journal of Macroeconomics

SN - 0164-0704

ER -

ID: 164572558