AffiliationUniv Arizona, Coll Opt Sci
MetadataShow full item record
PublisherKIEL INST WORLD ECONOMY
CitationRaymond J. Hawkins and Chau N. Nguyen (2018). Macroeconomic dynamics and the IS puzzle. Economics: The Open-Access, Open-Assessment E-Journal, 12 (2018-59): 1–13. http://dx.doi.org/10.5018/economics-ejournal.ja.2018-59
Rights© Author(s) 2018. Licensed under the Creative Commons License - Attribution 4.0 International (CC BY 4.0)
Collection InformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at email@example.com.
AbstractThe authors solve the IS puzzle for the G7 countries. They find that five of the G7 countries have the expected significant negative relationship between the output gap and the realrate gap; the time series of the remaining two show material deviation from expected IS-curve behavior. The authors show that the observed time dependence of the interaction between the output and real-rate gaps can be represented in a parsimonious and practical manner using the theory of anelasticity that unifies partial-adjustment specifications of the IS curve.
NoteOpen access journal.
VersionFinal published version