Open AccessEstimating the Quantitative Importance of Various Sources of Macroeconomic Variability
Author(s) -
Rizwan Tahir
Publication year - 1994
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v33i4iipp.1073-1087
Subject(s) - economics , business cycle , pigou effect , stock (firearms) , oil price , aggregate demand , macroeconomics , econometrics , keynesian economics , aggregate (composite) , relative price , monetary economics , monetary policy , mechanical engineering , materials science , composite material , engineering
Providing a reasonable explanation for the business cycle hasbeen the research agenda for many economists since the early 20thcentury, from Mitchell (1913), Pigou (1927) and Adelman and Adelman(1959) to Lucas (1972), Black (1982) and King and Plosser (1984). For areview, see Zarnowitz (1985). Most attempts to explain the sources ofmacroeconomic fluctuations' attribute the variability in output andprices to only a few sources, sometimes to\mJ.y one. Kydland andPrescott (1982) and others proposed technology shocks as the main sourceof aggregate variability; Barro (1977) pointed to unanticipated changesin money stock; Lilien (1982) argued for 'unusual structural shifts'such as changes in the demand for goods relative to services, andHamilton (1983) concluded in favour of oil price shocks.