caa a22 4500 46789602X CHVBK 20180406152804.0 cr unu---uuuuu 170328e20060301xx s 000 0 eng 10.1007/s00181-005-0042-5 doi (NATIONALLICENCE)springer-10.1007/s00181-005-0042-5 The role of permanent and transitory components in business cycle volatility moderation [Elektronische Daten] [Oleg Korenok, Stanislav Radchenko] The paper examines the processes underlying economic fluctuations by investigating the volatility moderation of U.S. economy in the early 1980s. We decompose the volatility decline using a dynamic factor framework into a common stochastic trend, common transitory component and idiosyncratic components. We find that the moderation of business cycle was a result of the moderation in transitory and idiosyncratic components. Our results suggest that important part of stochastic process that drives economy is transitory. The paper investigates the role of oil prices, monetary and financial market factors. Proposed economic factors do not have a significant relationship to either transitory or permanent components. In addition, we find that transitory shocks are as common during the 1980s and 1990s as they were during the 1960s and 1970s. Springer-Verlag, 2005 Volatility decline nationallicence Great moderation nationallicence Transitory shocks nationallicence Asymmetry nationallicence Factor models nationallicence Korenok Oleg Department of Economics, VCU School of Business, 1015 Floyd Avenue, 23284, Richmond, VA, USA aut Radchenko Stanislav Department of Economics, University of North Carolina at Charlotte, 28223, Charlotte, NC, USA aut Empirical Economics Springer-Verlag 31/1(2006-03-01), 217-241 0377-7332 31:1<217 2006 31 181 https://doi.org/10.1007/s00181-005-0042-5 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s00181-005-0042-5 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Korenok Oleg Department of Economics, VCU School of Business, 1015 Floyd Avenue, 23284, Richmond, VA, USA aut NATIONALLICENCE 700 1- Radchenko Stanislav Department of Economics, University of North Carolina at Charlotte, 28223, Charlotte, NC, USA aut NATIONALLICENCE 773 0- Empirical Economics Springer-Verlag 31/1(2006-03-01), 217-241 0377-7332 31:1<217 2006 31 181 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer