Long-Run Productivity Shifts and Cyclical Fluctuations: Evidence for Italy
IMF Working Papers, December 1, 2005
Source details
- Canonical URL
- Long-Run Productivity Shifts and Cyclical Fluctuations: Evidence for Italy
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Bibliographic details
- Authors: Silvia Sgherri
- Published: December 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451862478.001
Methodology
- Uses unobserved stochastic components and Kalman filter techniques.
- Analysis conducted within a production function framework.
Key findings
- "The increase in hours worked that has accompanied pension and labor market reforms accounts for the bulk of low-frequency variation in growth."
- "Factor utilization" is identified as the main driver of business cycle fluctuations.
- "In contrast with the predictions of standard Real Business Cycle models, a positive shock to the underlying rate of total factor productivity growth generates a slight decline in hours, whereas the response of output to the same shock is found to be positive."