tag:blogger.com,1999:blog-582368152716771238.post3048405232388842293..comments2024-03-28T14:41:03.793-05:00Comments on The Grumpy Economist: Arezki, Ramey, and Sheng on news shocksJohn H. Cochranehttp://www.blogger.com/profile/04842601651429471525noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-582368152716771238.post-24706220054055694992015-03-21T07:40:40.872-05:002015-03-21T07:40:40.872-05:00nice paper and great summary
In 1999, Scott Freem...nice paper and great summary<br /><br />In 1999, Scott Freeman co-wrote Endogenous Cycles and Growth with Indivisible Technological Developmments on When large, discrete technological improvements require the accumulation of research or infrastructural investment over time, growth paths display cyclical patterns even in the absence of any shocks.<br /><br />see http://econ.haifa.ac.il/~dpeled/papers/RED-1999.pdf<br /><br />This lumpiness implies that a costly process must be completed before the greatest part of a project’s benefits in output can be realized.<br /><br />Space research and satellite programs and major medical research are examples of prolonged and costly R & D whose benefits come primarily at the conclusion of the project. Infrastructural examples include the installation of telephone, internet , of transportation shipping canals, interregional highways, railroads, mass transit or electricity transmission projects once completed that may increase the productivity of many economic sectors.Jim Rosehttps://www.blogger.com/profile/02233668500637892711noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-62953756321504142952015-03-19T11:42:17.245-05:002015-03-19T11:42:17.245-05:00Negative co-movements of macro-variates are necess...Negative co-movements of macro-variates are necessarily implied by empirical correlations that are not unity. This is a cup half full, not half empty. David R.F. Lovehttp://www.brocku.ca/social-sciences/departments-and-centres/economics/faculty/david-r-f-lovenoreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-78241623267502848502015-03-18T17:33:20.197-05:002015-03-18T17:33:20.197-05:00So which of those other ingredients would alter th...So which of those other ingredients would alter the dynamics of the model in a manner that is inconsistent with the data? That they're unnecessary to match the responses to a particular shock is only informative if we should expect them to be necessary.<br /><br />That said, I like the idea of using a well-identified shock to test common ingredients in macro models.Jonathannoreply@blogger.com