New Academic Article Supports GO and Austrian Theory of the Business Cycle

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Mark Gertsen (University of Groningen) has just published an academic study in favor of gross output (GO) as a powerful new macroeconomic tool and statistic. His article, “Interest Rates, Roundaboutness, and Business Cycles: An Empirical Study,” is published in the fall 2019 issue of the Quarterly Journal of Austrian Economics.

You can read it here:  https://doi.org/10.35297/qjae.010024 

Using advanced econometric methods on GO data in 28 developed countries (compiled annually by the OECD), Gertsen confirms the Austrian theory of the business cycle, and concludes that changes in interest rates creates a boom-bust business cycle in GO, especially in the early-stages of production. To prove his thesis, he states, “I make use of the Gross Output (GO) metric pioneered by Skousen. Gross Output measures the combined value of all stages of production in the economy.”

 

Thanks, AEIOU,

Mark Skousen

Presidential Fellow, Chapman University

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