Rethinking Blanchard and Quah Model After Credit Crises: A Macroeconometrics Study

Bolcan A. Z.

ECLSS 2020a 9th ECLSS Conferences on Language and Social Sciences, Antalya, Turkey, 16 - 18 October 2020, pp.167, (Summary Text)

Publication Type: Conference Paper / Summary Text
City: Antalya
Country: Turkey
Page Numbers: pp.167
Istanbul University Affiliated: Yes

Abstract

The primary purpose of this study is to understand whether, after credit crises, the results of Blanchard and Quah (1989) still hold. Blanchard and Quah (1989) Model based on long-run restrictions which assume some identifications. Their model has two shocks which are aggregate demand and aggregate supply. We first estimated a Vector Autoregressive Model with from FREDII database, and then we identified the aggregate supply shock using the assumption that the shock is the only one that drives (log) real GDP in the long run. Finally, we draw impulse response functions (the point estimates and the 68% bootstrap confidence bands).