Creator: Beaudry, Paul and Portier, Franck Series: Great depressions of the twentieth century Abstract:
In this paper we make the following three claims. (1), in contradiction with the conventional view according to which the French depression was very different to that observed in the US, we argue that there are more similarities than differences between the French and U.S. experiences and therefore a common explanation should be sought. (2), poor growth in technological opportunities appear neither necessary nor sufficient to account for the French depression. (3), changes in institutional and market regulation appear necessary to account for the overall changes observed over the period. Moreover, we show that the size of these institutional changes may by themselves be enough to quantatively explain the French depression. However, at this time, we have no theory to explain the size or the timing of these changes.
Keyword: Stagnation, Market regulation, Depression, and France Subject (JEL): N14 - Macroeconomics and monetary economics ; Growth and fluctuations - Europe : 1913- and E32 - Prices, business fluctuations, and cycles - Business fluctuations ; Cycles
Creator: Kehoe, Timothy Jerome, 1953- and Prescott, Edward C. Description:
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.
Each chapter of the book is accompanied by a data file that contains all of the data used in the analysis. These files can be found in the Great Depressions of the Twentieth Century: Supporting Data and Code collection.
Table of Contents
Great Depressions of the Twentieth Century by Timothy J. Kehoe and Edward C. Prescott
A Second Look at the U.S. Great Depression from a Neoclassical Perspective by Harold L. Cole and Lee E. Ohanian
The Great U.K. Depression: A Puzzle and Possible Resolution by Harold L. Cole and Lee E. Ohanian
The Great Depression in Canada and the United States: A Neoclassical Perspective by Pedro Amaral and James C. MacGee
The French Depression in the 1930s by Paul Beaudry and Franck Portier
The Role of Real Wages, Productivity, and Fiscal Policy in Germany's Great Depression, 1928-37 by Jonas D. M. Fisher and Andreas Hornstein
The Great Depression in Italy: Trade Restrictions and Real Wage Rigidities by Fabrizio Perri and Vincenzo Quadrini
Argentina's Lost Decade and the Subsequent Recover Puzzle by Finn E. Kydland and Carlos E. J. M. Zarazaga
A Decade Lost and Found: Mexico and Chile in the 1980s by Raphael Bergoeing, Patrick J. Kehoe, Timothy J. Kehoe, and Raimundo Soto
The 1990s in Japan: A Lost Decade by Fumio Hayashi and Edward C. Prescott
The Brazilian Depression in the 1980s and 1990s by Mirta S. Bugarin, Roberto Ellery Jr., Victor Gomes, and Arilton Teixeira
Tariffs and the Great Depression Revisited by Mario J. Crucini and James A. Kahn
Recent Great Depressions: Aggregate Growth in New Zealand and Switzerland by Timothy J. Kehoe and Kim J. Ruhl
What Can We Learn from the 1998-2002 Depression in Argentina? by Timothy J. Kehoe
Prosperity and Depression by Edward C. Prescott
Modeling Great Depressions: The Depression in Finland in the 1990s by Juan Carlos Conesa, Timothy J. Kehoe, and Kim J. Ruhl