The Great Depression in Canada and the United States: A Neoclassical Perspective

Re-Examining the Role of Sticky Wages in the U.S. Great Contraction: A Multisectoral Approach

“…Moreover, the model's predictions for the behaviour of hours in our benchmark without adjustment costs already fall short of the data (see panels E and F in Figure 3). The capital dynamics implied by the model are relatively modest, with the model's predicted total capital stock falling by roughly 7 percent in 1933, which is in line with what we found in Amaral and MacGee (2002). …”

“…27 Our manufacturing deflator also implies a smaller fall in measured manufacturing output and (thus) TFP than measures of Ohanian (2001) and Amaral and MacGee (2002) Leontief (1951) Given our interest in quantifying the impact of heterogeneity in real wages across industries, we assume that our sectors differ in how wages adjust and the labor markets clear. The flexible wage sector has a competitive labor market where wages adjust each period to equate labor demand and supply.…”

“…48 We use measured aggregate TFP from Amaral and MacGee (2002). See the Web Appendix for more details on this experiment.…”

Business Cycle Accounting of the Indian Economy

“…The correlation between GDP per capita and e¢ ciency wedge is .98 and that between GDP per capita and labor wedge is . 1. Given our model, we expect a positive correlation between productivity or e¢ ciency wedge and output and that is supported by correlation …gures.…”

Recent great depressions: Aggregate growth in New Zealand and Switzerland, 1973–2000

“…Cole and Ohanian (1999) first applied the growth model to study the Great Depression of the 1930s in the United States. This successful application led to the study of depressions around the world using this method, including the depressions in Argentina (Kydland and Zarazaga 2002), Canada (Amaral and MacGee 2002), Chile and Mexico (Bergoeing, Kehoe, Kehoe, and Soto 2002), France (Beaudry and Portier 2002),…”