Title: Testing aggregate neutrality with heterogeneous sectors
Abstract: The existing empirical literature on the neutrality of aggregate demand policy implicitly assumes that the parameters of industry level output functions differ insignificantly across sectors. This paper tests this aggregation restriction and examines its implications for tests of aggregate neutrality. The results indicate that sectoral effects are significant determinants of aggregate output and that their exclusion may reverse the conclusions of aggregate neutrality tests.
Publication Year: 1995
Publication Date: 1995-12-01
Language: en
Type: article
Indexed In: ['crossref']
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