Michael A. Flor
Post Reunification Economic Fluctuations in
Germany:
A Real Business Cycle Interpretation
Abstract:
We consider the cyclical properties of the German economy prior and
after reunification in 1990 from the perspective of a real business
cycle model. The model provides the framework for the selection and
consistent measurement of the variables whose time series properties
characterize the cycle. Simulations of the calibrated model reveal the
model's potential to interpret the data. Major findings are that: i)
the volatility of most aggregate time series has not changed
significantly between the two time periods, ii) despite many conceptual
differences between the European and the U.S. System of Accounts, the
calibrated parameter values for the German economy are within the range
of values usually employed in the real business cycle literature, iii)
the model is closer to the data for the time period prior to
reunification.
JEL: C82, E01, E32
Paper:
Paper available as pdf-file.
Beitrag Nr. 324, Volkswirtschaftliche Diskussionsreihe, Institut
für
Volkswirtschaftslehre der Universität Augsburg
Contact:
Michael
A. Flor
email: michael.flor@wiwi.uni-augsburg.de
Bo., 24.04.2014