Was the Boom Exhausted from Within? Sectoral Sequencing and Real-Time Evidence from U.S. Recessions
This paper utilizes a comprehensive real-time archive of U.S. economic data to challenge the Austrian business cycle theory's prediction of a specific sectoral sequencing during credit reversals, finding that while capital-goods sectors react differently than aggregates, the proposed ordering is not consistently observed in real-time data and the resulting sectoral signals lack sufficient specificity to reliably distinguish recessions from arbitrary dates.