Some observations on the Great Depression in Germany
Date
2006
Authors
Weder, M.
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Journal article
Citation
German Economic Review, 2006; 7(1):113-133
Statement of Responsibility
Conference Name
Abstract
This paper evaluates the role of preference shocks during the Great Depression in Germany. From Euler equation residuals, I am able to identify a series of contractionary shocks that struck the German economy from 1929 to 1932. I apply the sequence of these taste innovations to a dynamic general-equilibrium model and find that the size and the order of shocks can generate a pattern that can explain the lion's share of the decline in economic activity. The artificial economy also predicts a swift recovery after 1932, thereby questioning any significant effects of Nazi economic policy.
School/Discipline
Dissertation Note
Provenance
Description
The definitive version of this paper can be found at www.blackwell-synergy.com