Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/175503 
Year of Publication: 
2016
Series/Report no.: 
School of Economics Discussion Papers No. 1606
Publisher: 
University of Kent, School of Economics, Canterbury
Abstract: 
This paper analyses the Post-crisis slump in 29 European economies during the 2008Q1 - 2014Q4 period using the Business Cycle Accounting (BCA) method á la Chari, Kehoe and McGrattan (2007). We find that the deterioration in the efficiency wedge is the most important driver of the European Great Recession and that this adverse shock persists throughout our sample. Moreover, we find that the growth rate of non-performing loans are negatively associated with the decline in efficiency wedges. These findings support the emerging literature on resource misallocation triggered by financial crises
Subjects: 
Great Recession in Europe
Business Cycle Accounting
JEL: 
E13
E32
Document Type: 
Working Paper

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