Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
Growth Theories and the Persistence of Output Fluctuations: The Case of Austria
(), Thomas Steinberger and Martin Zagler
Abstract: The paper analyses the degree of output persistence in GDP
in order to empirically discriminate between the Solow growth model, the
perfect competition endogenous growth model, the imperfect competition
endogenous growth model, and the subcase of a multiple equilibria model of
endogenous growth for the case of Austria. We find that a temporary shock
in the growth rate of output induces a permanent and larger effect on the
level of GDP. This leads us to refute the Solow growth model and the
perfect competition model. We find strong empirical support for the
imperfect competition growth model, but cannot fully rule out the
possibility of multiple equilibria growth rates.
Keywords: Austria; output persistence; endogenous growth; univariate time series analysis; (follow links to similar papers)
JEL-Codes: C22,; O47,; O52; (follow links to similar papers)
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