Document Type
Discussion Paper
Publication Date
3-1-2018
CFDP Number
2124
CFDP Pages
24
Journal of Economic Literature (JEL) Code(s)
E1, E3
Abstract
This paper argues that the slow U.S. recovery after the 2008–2009 recession was due to sluggish government spending. The analysis uses a structural macroeconometric model. Conditional on government policy, the errors in predicting output for the 2009.4–2017.4 period are within what one would expect historically. Productivity and labor force participation are endogenous variables in the model, and so their behavior in this period is a consequence of the slow growth rather than a cause.
Recommended Citation
Fair, Ray C., "Explaining the Slow U.S.Recovery: 2010–2017" (2018). Cowles Foundation Discussion Papers. 151.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/151