TY  - JOUR
AU  - Ireland,Peter N.
TI  - Stochastic Growth in the United States and Euro Area
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16681
PY  - 2011
Y2  - January 2011
UR  - http://www.nber.org/papers/w16681
L1  - http://www.nber.org/papers/w16681.pdf
N1  - Author contact info:
Peter N. Ireland
Boston College
Department of Economics
140 Commonwealth Ave.
Chestnut Hill, MA 02467-3859
Tel: 617/552-3687
Fax: 617/552-2308
E-Mail: irelandp@bc.edu
AB  - This paper estimates, using data from the United States and Euro Area, a two-country stochastic growth model in which both neutral and investment-specific technology shocks are nonstationary but cointegrated across economies. The results point to large and persistent swings in productivity, both favorable and adverse, originating in the US but not transmitted to the EA. More specifically, the results suggest that while the EA missed out on the period of rapid investment-specific technological change enjoyed in the US during the 1990s, it also escaped the stagnation in neutral technological progress that plagued the US in the 1970s.
ER  -