A Decomposition of the Increased Stability of GDP Growth
6 Pages Posted: 26 Jun 2007
Date Written: September 1999
Since 1984, the U.S. economy has grown at a remarkably steady pace. An analysis of this increased stability shows that every major component of GDP has exhibited smoother growth. However, two components - inventory investment and consumer spending - are responsible for the bulk of the decline in overall volatility.
Keywords: output volatility, inventory investment, structural change, consumption, investment, government spending, exports, imports
JEL Classification: E3, E22, E32
Suggested Citation: Suggested Citation