Template-type: ReDIF-Paper 1.0
Author-Name: Dr. Yannic Stucki
Author-Name-First: Yannic
Author-Name-Last: Stucki
Author-Person: pst874
Author-Name: Dr. Jacqueline Thomet
Author-Name-First: Jacqueline
Author-Name-Last: Thomet
Author-Person: pth361
Title: A neoclassical perspective on Switzerland's 1990s stagnation
Abstract: We study Switzerland's weak growth during the 1990s through the lens of the business cycle accounting framework of Chari, Kehoe, and McGrattan (2007). Our main result is that weak productivity growth cannot account for the stagnation experienced during that time. Rather, the stagnation is explained by factors that made labour and investment expensive. We show that increased labour income taxes and financial frictions are plausible causes. Holding these factors constant, the counterfactual annualized real output growth over the 1992Q2-1996Q4 period is 1.93% compared to realized growth of 0.35%.
Length: 43 pages
Creation-Date: 2020
Contact-Email: forschung@snb.ch
File-URL: https://www.snb.ch/en/publications/research/working-papers/2020/working_paper_2020_22
File-Format: text/html
Number: 2020-22
Classification-JEL: E13, E20, E32, E65
Keywords: Business cycle accounting, housing crises, stagnation, Switzerland
Handle: RePEc:snb:snbwpa:2020-22