Mills, Terence C.; Wang, Ping - In: Empirical Economics 27 (2002) 2, pp. 255-276
Friedman's `plucking' model, in which output cannot exceed a ceiling level but is occasionally plucked downward by recessions, is tested using Kim and Nelson's formal econometric specification on output data from the G-7 countries. Considerable support for the model is obtained, leading us to...