Abstract This article develops a new model of business cycles. The is economical in that it solved with an aggregate demand–aggregate supply diagram, and the effects shocks policies are obtained by comparative statics. builds on two unconventional assumptions. First, producers consumers meet through matching function. Thus, features unemployment, which fluctuates response to demand shocks. Seco...

This paper explores the feature of business cycle across breaks in Taiwan and Korea. We employed tests devised by Bai and Perron (2003) to show that, for Taiwan’s business cycle, two breaks are present. In contrast, one break is revealed in the economic restructuring process in Korea. Moreover, the feature of business cycle process across breaks is congruent with the real business cycle theory.

One basic problem in business-cycle studies is how to deal with nonstationary time series. The market economy is an evolutionary system. Economic time series therefore contain stochastic components that are necessarily time dependent. Traditional methods of business cycle analysis, such as the correlation analysis and the spectral analysis, cannot capture such historical information because the...

The recent financial crisis has created a significant deviation between real world and existing business cycle theories. This paper follows the spirit of McGrattan and Prescott (2012) and reassesses this labor productivity puzzle by considering a real business cycle (RBC) model with R&D assets and organizational capital. It contributes to the literature in two ways. First, R&D assets and organi...

A methodology based on the multivariate generalized Butterwoth filter for extracting the business cycles of the whole economy and of its productive sectors is developed. The method is then illustrated through an application to the Italian gross value added time series of the main economic sectors.