Werner Hölzl, Serguei Kaniovski and Andreas Reinstaller

Correspondence: Andreas Reinstaller, andreas.reinstaller@wifo.ac.at

Austrian Institute for Economics Research (WIFO), Austria

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Abstract

This paper studies the business cycle sensitivity of industries using different industry groupings. The results show that technologically intense industries are heavily affected by business cycles. While the overall importance of business cycles for long-run growth seems to be rather limited, we observe for industries with high technology intensity that business cycles may have persistent long-run effects on sectoral performance.

Keywords:

  technology shocks, business cycle, long-run restrictions, sectoral response, structural change

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