Katayama, Munechika; Kim, Kwang Hwan - Department of Economics, Ourso College of Business
A key feature of the business cycle data is that output, employment and investment move up and down together in dierent … sectors of the economy. However, standard business cycle models fail to generate this business cycle sectoral co-movement. In … this paper we propose a two-sector business cycle model that generates the sectoral cycle co-movement in response to both …