This study analyzes business cycles from a sectoral perspective. Multi-sectoral models are able to explain some elements of economic fluctuations that cannot be examined in a single-consumer single-producer model. Two problems are examined in this research work: (i) are distortions in the allocation of capital inputs across sectors able to explain fluctuations in output?; (ii) are economic fluctuations the result of sectoral or aggregate shocks? / A theoretical sectoral model where capital allocative disturbances produce deviations of output from its long-run trend is presented. This model shows that small sectoral shocks may play an important role in the business cycle phenomenon. / To provide empirical evidence for the first issue, a proxy variable for capital allocative disturbances is constructed. The empirical analysis consists of estimating of a four variable VAR model comprised by industrial production, an ex-ante real interest rate, the Solow residual, and the variable for capital allocative disturbances. The analysis shows that capital allocative disturbances can explain some of the fluctuations in industrial production. / To empirically examine the second issue the Solow residual for nine industrial groups is used as proxy variables for technological advance. To extract the common and specific shocks, a factor analysis was used. The common and specific factors are then incorporated into a VAR model, where industrial production is used as the economic activity indicator. It is found that, although common shocks explain a large proportion of the forecast error variance of industrial production, the sectoral shocks explain around one third of this variance. / Source: Dissertation Abstracts International, Volume: 51-04, Section: A, page: 1322. / Major Professor: Milton Marquis. / Thesis (Ph.D.)--The Florida State University, 1990.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_78237 |
| Contributors | Toledo, Wilfredo., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 153 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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