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Declining output growth volatility: A sectoral decomposition

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  • Chun, Hyunbae
  • Kim, Jung-Wook

Abstract

A decomposition of the U.S. aggregate output growth volatility using two-digit industry-level data shows that more than 60% of the post-1983 reduction in aggregate output growth volatility is attributed to the lowered comovement in total factor productivity (TFP) growth between industries. In contrast, stabilized input and TFP growths within an industry contribute little.

Suggested Citation

  • Chun, Hyunbae & Kim, Jung-Wook, 2010. "Declining output growth volatility: A sectoral decomposition," Economics Letters, Elsevier, vol. 106(3), pages 151-153, March.
    • Handle: RePEc:eee:ecolet:v:106:y:2010:i:3:p:151-153
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    References listed on IDEAS

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