Why Does Consumption Lead the Business Cycle?¤
نویسنده
چکیده
Consumption in the US leads output at the business cycle frequency. Standard RBC models predict the opposite. We show in this paper that the lack of an endogenous propagation mechanism that can support demand shocks is responsible for the discrepancy between RBC theory and data. ¤I thank two anonymous referees and the editor Harald Uhlig for helpful comments on an earlier version of the paper.
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تاریخ انتشار 2001