01970cas a2200253 a 4500 AALejournalIMF018463 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484354582 1018-5941 BD-DhAAL BD-DhAAL Li, Nan. Real Sectoral Spillovers : A Dynamic Factor Analysis of the Great Recession / Nan Li, Vance Martin. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (52 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies changes in the transmission of common versus sectoral idiosyncratic shocks across different U.S. nonfarm business sectors during the Great Recession, and evaluates the cross-sectoral spillovers. Shocks are identified by dynamic factor methods. We find that the Great Recession is largely a time of heightened impact of common shocks- which accounts for 3/4 of aggregate volatility-and large spillovers of negative financerelated shocks. Moreover, in contrast with the earlier literature that failed to find a significant role of sectoral shocks (propagated through the input-output linkages across sectors) in driving variability in aggregate industry output, this study allows spillovers of shocks to operate through other mechanisms intertemporally. We find that prior to the recession the majority of aggregate fluctuations is explained by sector-specific shocks. Mode of access: Internet Martin, Vance. IMF Working Papers; Working Paper ; No. 2018/100 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/100/001.2018.issue-100-en.xml IMF e-Library