Salyer (1998), "Technology Shocks or Coloured Noise? Why Real- Business-Cycle Models cannot Explain Actual Business Cycles,"Review of Political Economy, 10, 299-327.Hoover, K. and K. Salyer (1998), "Technology Shocks or Coloured Noise? Why Real- Business-Cycle Models cannot Explain Actual ...
The authors study the movements in output, consumption, and hours that are forecastable from a vector autoregression and analyze how they differ from those predicted by standard real-business-cycle models. They show that actual forecastable movements in output have a variance about one hundred time...
According to real business cycle theory the money multiplier explains money-output correlations because nominal policy is impotent. This paper re-examines the key assumptions of the multiplier approach and presents empirical evidence for five countries. The main conclusions are as follows. First, base...
Real Business Cycles课件 FIN30220:MacroeconomicAnalysis RealBusinessCycles 精 1 ACompleteBusinessCycleconsistsofanexpansionandacontraction Peak recession 2.001.501.000.500.00-0.502000-I-1.00-1.50-2.00 2002-I 2004-I Expansion Trough 精 2 Here,weareplottingpercentagedeviationofGDPfromaHPtrend 54 3210...
Simple, old fashioned Keynesian models of cyclical fluctuations provide a legitimate alternative to neoclassical real business cycle models. Not only can these models mimic many of the characteristics of actual business cycles, the ad hoc behavioral rules on which they are based are vastly simpler and...
Simple, old fashioned Keynesian models of cyclical fluctuations provide a legitimate alternative to neoclassical real business cycle models. Not only can these models mimic many of the characteristics of actual business cycles, the ad hoc behavioral rules on which they are based are vastly simpler and...
Business Cycles:Business cycle refers to times of economic contraction and economic expansion relative to the trend in the economic growth rate. During contraction production, income, and employment decline below the trend growth. On the other hand, during ...
Real GDP is informative of the size of the economy and the performance of recent economic activity. The real growth rate is often used as a performance indicator as it often provides better guidance on economic conditions due to actual activity as opposed to growth due to inflated prices. ...
Finally, as an application of our technique, we consider the debate between the real business cycle theorists and the monetarist school on the effects of money on output. Recent studies of this question have argued that money growth may be a poor proxy of monetary policy. Accordingly, we use...
This finding calls into question the effectiveness of discretionary fiscal policies to fine tune the business cycle, as (pro-cyclical) actual outcomes tend to deviate from (counter-cyclical) fiscal plans. Furthermore, we test whether threshold effects might be at play in the reaction of fiscal ...