Foerster, Andrew T.; Sarte, Pierre-Daniel G.; Watson, … - In: Journal of Political Economy 119 (2011) 1, pp. 1-1
Using factor methods, we decompose industrial production (IP) into components arising from aggregate and sector-specific shocks. An approximate factor model finds that nearly all of IP variability is associated with common factors. We then use a multisector growth model to adjust for the effects...