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  • 8c97kq49n?file=thumbnail
    Creator: Kehoe, Timothy J. and Prescott, Edward C.
    Series: Staff Report (Federal Reserve Bank of Minneapolis. Research Dept.)
    Number: 418

    Three of the arguments made by Temin (2008) in his review of Great Depressions of the Twentieth Century are demonstrably wrong: that the treatment of the data in the volume is cursory; that the definition of great depressions is too general and, in particular, groups slow growth experiences in Latin America in the 1980s with far more severe great depressions in Europe in the 1930s; and that the book is an advertisement for the real business cycle methodology. Without these three arguments — which are the results of obvious conceptual and arithmetical errors, including copying the wrong column of data from a source — his review says little more than that he does not think it appropriate to apply our dynamic general equilibrium methodology to the study of great depressions, and he does not like the conclusion that we draw: that a successful model of a great depression needs to be able to account for the effects of government policy on productivity.


    In 2008, Peter Temin wrote a review of the book that appeared in the Journal of Economic Literature. This staff report and accompanying data file are in response to the review.

    Citation for review: Temin, Peter. 2008. "Real Business Cycle Views of the Great Depression and Recent Events: A Review of Timothy J. Kehoe and Edward C. Prescott's Great Depressions of the Twentieth Century." Journal of Economic Literature, 46 (3): 669-84. DOI:

  • Xg94hp61t?file=thumbnail

    The files below demonstrate how to calibrate the neoclassical growth model and then solve the model numerically, using data from Finland as an example.

    BaseCaseCalibration.xls calibrates model parameters and derives a sequence of TFP values in the ‘calibration’ worksheet. The parameters are also saved in paramBase.txt, and the series of TFP values along with labor endowment and taxes are saved in dataBase.txt. The MATLAB program depressions.m uses these text files and solveModel.m to solve the model numerically. The output this program saves to output.xls can be used to generate the graphs in BaseCaseCalibration.xls.

    These files can be used to model any economy over any period by replacing the data in BaseCaseCalibration.xls and saving the results in the correct format to paramBase.txt and dataBase.txt. The files below contain an overview of the calibration procedures, the MATLAB programs, and instructions on using the files on your own data. More details can be found in the files themselves.

  • 6h440s49d?file=thumbnail
    Creator: Ueberfeldt, Alexander

    Data supporting the chapter "Prosperity and Depression." The file Ely-Sources.xls contains the original data and constructed series used to generate the Tables 1 to 6 and the Figures 1 to 3. Each of the nine objects has its own worksheet in the file. For example the worksheet that contains series used to generate figure 1 in the paper, is entitled Fig 1. In each worksheet, original series are labeled On and constructed series are labeled Cn. Constructed series Cn are obtained from the original and/or other constructed series in the respective worksheet.

  • C247ds185?file=thumbnail

    Each chapter of the book is accompanied by a data file that contains all of the data used in the analysis. This collection also provides links to computer programs for applying the methodology.

    The worldwide Great Depression of the 1930s was a watershed for both economic thought and economic policymaking. It led to the belief that market economies are inherently unstable and to the revolutionary work of John Maynard Keynes. Its impact on popular economic wisdom is still apparent today.

    This book, which uses a common framework to study sixteen depressions, from the interwar period in Europe and America as well as from more recent times in Japan and Latin America, challenges the Keynesian theory of depressions. It develops and uses a methodology for studying depressions that relies on growth accounting and the general equilibrium growth model.

  • F4752g809?file=thumbnail
    Creator: Kehoe, Timothy J. and Prescott, Edward C.

    Data supporting the chapter "Great Depressions of the Twentieth Century."

  • Tx31qh70j?file=thumbnail
    Creator: Perri, Fabrizio and Quadrini, Vincenzo

    Data supporting the chapter "The Great Depression in Italy: Trade Restrictions and Real Wage Rigidities."

  • Zk51vg795?file=thumbnail
    Creator: Bergoeing,Raphael, Kehoe, Patrick J., Kehoe, Timothy J., and Soto, Raimundo

    Data supporting the chapter "A Decade Lost and Found: Mexico and Chile in the 1980s."

  • Gb19f588x?file=thumbnail
    Creator: Cole, Harold L. and Ohanian, Lee E.

    Data supporting the chapter "A Second Look at the U.S. Great Depression from a Neoclassical Perspective."

  • S1784k767?file=thumbnail
    Creator: Bugarin, Mirta S., Ellery Jr., Roberto, Gomes, Victor, and Teixeira, Arilton

    Data supports the chapter "The Brazilian Depression in the 1980s and 1990s."

  • M039k4946?file=thumbnail
    Creator: Fisher, Jonas D.M. and Hornstein, Andreas

    Data supporting the chapter "The Role of Real Wages, Productivity, and Fiscal Policy in Germany’s Great Depression, 1928-37."