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2008): “Driving Forces of the Canadian Economy: An Accounting Exercise,” Bank of Canada Working Paper 08-14, Federal Reserve Bank of Dallas Globalization and Monetary Policy Institute Working Paper 6

Title: 2008): “Driving Forces of the Canadian Economy: An Accounting Exercise,” Bank of Canada Working Paper 08-14, Federal Reserve Bank of Dallas Globalization and Monetary Policy Institute Working Paper 6
Authors: Simona E. Cociuba; Alexander Ueberfeldt; Jel Codes E; Mark Wynne For Comments; Suggestions We Thank Am; A Armstrong; Andrew Au
Contributors: The Pennsylvania State University CiteSeerX Archives
Source: http://www.dallasfed.org/assets/documents/institute/wpapers/2008/0006.pdf.
Collection: CiteSeerX
Description: This paper analyses the Canadian economy for the post 1960 period. It uses an accounting procedure developed in Chari, Kehoe, and McGrattan (2006). The procedure identifies accounting factors that help align the predictions of the neoclassical growth model with macroeconomic variables observed in the data. The paper finds that total factor productivity and the consumption-leisure trade-off—the productivity and labor factors—are key to understanding the changes in output, labor supply and labor productivity observed in the Canadian economy. The paper performs a decomposition of the labor factor for Canada and the United States. It finds that the decline in the gender wage gap is a major driving force of the decrease in the labor market distortions. Moreover, the milder reduction in the labor market distortions observed in Canada, compared to the US, is due to a relative increase in effective labor taxes in Canada.
Document Type: text
File Description: application/pdf
Language: English
Relation: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.405.5209; http://www.dallasfed.org/assets/documents/institute/wpapers/2008/0006.pdf
Availability: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.405.5209; http://www.dallasfed.org/assets/documents/institute/wpapers/2008/0006.pdf
Rights: Metadata may be used without restrictions as long as the oai identifier remains attached to it.
Accession Number: edsbas.3645EB57
Database: BASE