STRUCTURAL CHANGE AND POSTWAR ECONOMIC STABILITY: AN ECONOMETRIC TEST.
PRINCETON UNIV N J ECONOMETRIC RESEARCH PROGRAM
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The purpose of this paper is to explore within the context of several simple macroeconomic models the magnitude and significance of the structural changes that have taken place since the 1930s. The method that is used to examine the structural-change hypothesis is first to estimate separately for 1921-41 and 1946-66 the parameters of a macroeconomic model of income determination. The parameter estimates are then compared to see if there are any significant differences between the two periods. Finally, the dynamic properties of the systems for each of the subperiods are derived and compared. The presumption is that the parameter estimates and the implied system behavior will reflect the structural changes that have been effected since the great depression. Author
- Economics and Cost Analysis