Real business-cycle theory (RBC theory) is a class of new classical macroeconomics models in which business-cycle fluctuations are accounted for by real, in contrast to nominal, shocks. [1] …
Business cycle theory aims to explain the ⁄uctuations in aggregate economy. Speci–cally, two central questions need to answer: (i) what are the sources (shocks) of business...
• What are the business cycle properties of the basic neoclassical model of capital accumulation, when it is augmented by productivity shocks? • What are desirable strategies for computing …
These papers stimulated much research into the influence of productivity on macroeconomic activity including work on its measurement, its origin and its consequences. the article, from …
Business cycles are created by rational agents responding optimally to real (not nominal) shocks - mostly fluctuations in productivity growth, but also fluctuations in government purchases, …
The model does a good job if it can match the stylised facts of business cycles observed in postwar U.S. quarterly data, both qualitative (co-movement) and quantitative (volatility, …
A mathematical and graphical treatment of the Q-theory extension of the Basic Real Business Cycle model of Prescott indicates that several key re-sults are robust to both investment …
real theories of the business cycle was further stimulated by two other important facts. First, the supply shocks associated with the two OPEC oil price increases during the 1970s made …