The role of permanent and transitory components in business cycle volatility moderation

@inproceedings{Korenok2004TheRO,
  title={The role of permanent and transitory components in business cycle volatility moderation},
  author={Oleg Korenok},
  year={2004}
}
The paper examines the processes underlying economic fluctuations by investigating the volatility moderation of U.S. economy in the early 1980’s. We decompose the volatility decline using a dynamic factor framework into a common stochastic trend, common transitory component and idiosyncratic components. We find that the moderation of business cycle was a… CONTINUE READING