Kiel Working Papers, Kiel Institute for World Economics
No 1721:
A tale of two countries: A comparison of the aggregate effects of sectoral reallocation in the United States and Germany
Christopher Reicher
Abstract: This paper compares the aggregate effects of sectoral
reallocation in the United States and Western Germany using a stochastic
volatility model of sectoral employment growth. Reallocative shocks have no
effect on the natural rate of unemployment in either country, and there is
mild evidence that reallocative shocks are contractionary over the cycle.
The overall statistical contribution of such shocks to the cycle, however,
is limited. Reallocative shocks do not appear to be to blame for the rise
in trend unemployment in Germany in the 1980s or for a possible rise in
trend unemployment in the United States following the Great Recession
Keywords: Sectoral shifts, reallocation, natural rate, unemployment, turbulence, stochastic volatility; (follow links to similar papers)
JEL-Codes: E24,; E32,; J24,; J62; (follow links to similar papers)
27 pages, July 2011
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
a-tale-of-two-countries-a ... ed-states-and-germany.pdf
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom