Deconstructing the Success of Real Business Cycles

نویسنده

  • EMI NAKAMURA
چکیده

The empirical success of Real Business Cycle (RBC) models is often judged by their ability to explain the behavior of a multitude of real macroeconomic variables using a single exogenous shock process. This paper shows that in a model with the same basic structure as the bare bones RBC model, monetary, cost-push or preference shocks are equally successful at explaining the behavior of macroeconomic variables. Thus, the empirical success of the RBC model with respect to standard RBC evaluation techniques arises from the basic form of the dynamic stochastic general equilibrium model, not from the specific role of the productivity shock. (JEL E32, E37)

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Bank Lending Behaviour over the Business Cycle in Iran

This paper studies bank loans over the business cycles in Iran to determine the role of Iranian banks in stabilizing credit. By estimating the long-run relations using dynamic OLS and fully modified OLS estimators, the findings show that real bank lending is positively related to real GDP in the long-run providing evidences of the pro-cyclicality of bank lending in Iran. Hence, Iranian banking ...

متن کامل

The Role of Financial Frictions in Iran’s Business Cycles: A DSGE Approach

B efore the incidence of the financial crisis in 2008, the financial sector was ignored in the most of business cycles analyses. It was assumed that the financial sector played no independent role in describing business cycle fluctuations and followed the real part of the economy. In recent years, modeling financial frictions have been much considered in business cycles literature. T...

متن کامل

The Role of Financial Policies on the Selection of Commovment among Macroeconomic Variables in Business cycles Deviations under Commitment Conditions

The economic fluctuations and the changing business circles of a country play an important role in the economic performance and fate of any country, which is very important and important when considering the economic situation at a time of boom or recession under accrual conditions. In this paper, In the framework of the Ramsey model, the basis of microeconomics is extracted using neoclassical ...

متن کامل

Credit Cycles of the Iranian Economy

There is a lot of evidence on the relationship between business cycles and financial. We study the credit cycles of the Iranian Economy and their relationship with the business cycles. The literature suggests using various indicators for credit cycles. We use the ratio of banking loan to the private sector to potential nominal GDP as the indicator of credit status. Contraction and expansion per...

متن کامل

Test of Real Business Cycle Theory in Iran's economy

This paper tests the importance of real shocks as sources of fluctuations in iran’s economy. For this purpose, based on the work of Boschen and Mills, a set of non-monetary variables which can affect economic growth have been selected and by using an illustrative business cycle model in which the production depends on the past and current value of real shocks, the influence 01’ these variables ...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2008