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A neoclassical analysis of the Great Recession: a historical comparison

Otsu, Keisuke, Gerth, Florian (2015) A neoclassical analysis of the Great Recession: a historical comparison. Economics Bulletin, 35 (4). pp. 2363-2373. ISSN 1545-2921. (doi:EB-15-V35-I4-P237) (KAR id:45783)

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In this paper we conduct a quantitative analysis to investigate the pattern of output loss during past banking crisis episodes by comparing the Great Recession, Great Depression and "Inter-Greats" periods. We find that during all periods output does not fully recover after 5 years from the onset of the banking crisis. However, while the output loss during the Great Recession was as large as that during the Great Depression, the output decline was much more gradual during the Great Recession. Moreover, a neoclassical growth model with productivity shocks can account for the Great Recession period extremely well compared to the Great Depression and Inter-Greats periods.

Item Type: Article
DOI/Identification number: EB-15-V35-I4-P237
Subjects: H Social Sciences > HB Economic Theory
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: K. Otsu
Date Deposited: 17 Nov 2016 10:01 UTC
Last Modified: 16 Feb 2021 13:21 UTC
Resource URI: (The current URI for this page, for reference purposes)
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