Business Cycle Accounting For Chile

Author/Editor:

Ludvig Söderling ; Ina Simonovska

Publication Date:

March 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

We investigate sources of economic fluctuations in Chile during 1998-2007 within the framework of a standard neoclassical growth model with time-varying frictions (wedges). We analyze the relative importance of efficiency, labor, investment, and government/trade wedges for business cycles in Chile. The purpose of this exercise is twofold: (i) focus the policy discussion on the most important wedges in the economy; and (ii) identify which broad class of models would present fruitful avenues for further research. We find that different wedges have played different roles during our studied period, but that the efficiency and labor wedges have had the greatest impact. We also compare our results with existing studies on Argentina, Brazil, and Mexico.

Series:

Working Paper No. 2008/061

Subject:

Consumption Fiscal accounting and reporting Labor Mining sector Total factor productivity

English

Publication Date:

March 1, 2008

ISBN/ISSN:

9781451869231/1018-5941

Stock No:

WPIEA2008061

Pages:

28

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