In this paper we quantitatively investigate the boom and the bust of the Japanese economy during 1980-2000 using the business cycle accounting technique. This method helps us identify the distortion margins called "wedges" that played a significant role in accounting for the output fluctuations....

This paper investigates the role of technology shocks as a propagation mechanism for business cycles using the new technique of business cycle accounting (BCA) and some new evidence from Japan. BCA technique enables us to model the economy as a standard growth model, but extends it to allow...

There is no debate amongst economists that Japan performed poorly during the1990s. This can be seen in falling growth rates of GDP per capita, investment per capita and mounting problems of non performing loans and ballooning Government deficit. A lot of models have tried to come up with an...

What are the economic mechanisms that account for sudden growth spurts? Are these mechanisms similar across episodes? Focusing on the economic resurgence of the BRICs over the last decade, we employ the Business Cycle Ac- counting methodology developed by Chari, Kehoe and McGrattan (2007) to...

Why are women financially excluded? Is there an association between women empowerment laws, prevalence of discriminatory attitudes in a society towards women and financial empowerment of women? Using a cross-country survey, this paper finds statistical evidence that suggests women are...

Can we use neoclassical growth model to single out the important transmission channels through which external factors or ?primitives? affected the Indian economy and caused the remarkable growth of the period 1982?2002? In this paper, we answer the question by applying the new technique of...

This paper builds a two-country model with differential productivity and financial frictions to quantitatively account for the recent increase in the U.S. current account deficit. An influential literature says that as U.S. productivity surged, capital was attracted to the United States to take...

A puzzling ambiguity in current international economics literature is the link between sudden stops and output drops. While some studies predict the link, others find sudden stops lead to output increases. This paper theoretically shows that the ambiguity results from alternative preference...

This paper investigates the causes of business cycle fluctuations that Japan experienced over the period 1980 to 2000. To this end, I build a dynamic general equilibrium model with endogenous borrowing constraints where business cycle fluctuations are the result of TFP fluctuations and...