Growth theories and the persistence of output fluctuations. The case of Austria.

Christian Ragacs, Thomas Steinberger, Martin Zagler

Publication: Working/Discussion PaperWU Working Paper

7 Downloads (Pure)

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.
Original languageEnglish
Place of PublicationVienna
PublisherInst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business
Publication statusPublished - 1998

Publication series

NameDepartment of Economics Working Paper Series
No.60

WU Working Paper Series

  • Department of Economics Working Paper Series

Cite this