Technological shocks mechanism on Macroeconomic Variables: A Dynamic Stochastic General Equilibrium (DSGE) approach.

Bondzie, Eric Amoo and Fosu, Gabriel Obed and Obu-Cann, Ernest (2013): Technological shocks mechanism on Macroeconomic Variables: A Dynamic Stochastic General Equilibrium (DSGE) approach. Published in: Journal of Research in Humanities and Social Science , Vol. 2, No. 2 (February 2014): pp. 10-20.

Abstract

As Ghana assumes a position of oil producer and middle-income country, it must learn to effectively deal with the related pressures from shocks. We analyze the effects of productivity shocks on Ghana’s total output using the multi-sector dynamic stochastic general equilibrium (DSGE) model. It was actualized that a productivity shock results in a temporary shrinkage in the final goods sectors due to the reallocation of labour from the final and intermediate goods sectors. We demonstrated that technological shock induces an initial fall in marginal cost of production but later rises to reach equilibrium.

• Item Type: MPRA Paper
• Language: English
• Keywords: DSGE models, Economic growth, Technological shocks
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

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