Title: Granger causality and equilibrium business cycle theory
Description: "Post war US data show that consumption growth causes output and investment growth.  This is puzzling if technology is the driving force of the business cycle.  I ask whether general equilibrium models driven by demand shocks can rationalize the observed causal relations.  My conclusion is that business cycle theory remains behind business cycle measurement"--Federal Reserve Bank of St. Louis web site.
Subjects: Business cycles
Places: United States