Rebelo 1999, \ resuscitating real business cycles in. Kydland business cycles and aggregate labor market fluctuations. Economic fluctuations and growth program the real business cycle rbc research program has grown spectacularly over the last decade, as its concepts and methods have diffused into mainstream macroeconomics. Correlations between real wages, interest rates, and output. Resuscitating real business cycles, nber working papers 7534, national bureau of economic research, inc. Resuscitating real business cycles, in handbook of macroeconomics, vol. Resuscitating real business cycles, handbook of macroeconomics, chapter 14. Chapter 14 in handbook of macroeconomics, 1999, vol.
Real business cycle theory assigns a central role to technology shocks as the source of aggregate. Low frequency filtering and real business cycles, with r. The real business cycle rbc research program has grown. While several papers that we cite in footnote 12 have looked at the relationship between. Robert king and sergio rebelo chapter 14 in handbook of macroeconomics, 1999, vol. Later, plosser, summers, mankiw and many other economists. Laurea magistrale in economics classe lm56, 9 cfu this page and all associated material are freely accessible on the moodle platform at the following link.
Canova and dellas 1993 and imbs 2004 find that international trade plays a relatively moderate role in transmitting business cycles across countries. Real business cycles are recurrent fluctuations in an economys incomes, products, and factor inputs especially labour that are due to nonmonetary sources. Comparing shocks and frictions in us and euro area business cycles. Rebelo, resuscitating real business cycles, in handbook of macroeconomics edited by john taylor and michael woodford, north holland, 1999, 9271007. The rbc theory of business cycles has two principles. Rebelo, handbook of macroeconomics vol 1, part 2, chapter 14. King and rebelo 1999 resuscitating real business cycles, ch. Can the standard international business cycle model. Real business cycle theory assigns a central role to technology shocks as the source of aggregate fluctuations. Macroeconomic theory ii central european university. Rebelo, resuscitating real business cycles, in handbook of macroeconomics 1999. Most real business cycle rbc models are variants or extensions of a.
However, formatting rules can vary widely between applications and fields of interest or study. The real business cycle theory has been evolved out of the american new classical school of 1980s. Resuscitating real business cycles lecture 3 consume less. Is the technologydriven real business cycle hypothesis dead. Can the standard international business cycle model explain. We systematically evaluate how to translate a calvo wage duration into an implied rotemberg wage adjustment cost parameter in mediumscale new keynesian dsge models by making use of the wellknown equivalence of the two setups at first order. University of california, san diego spring 2014 department of. May 07, 2000 the real business cycle rbc research program has grown spectacularly over the last decade, as its concepts and methods have diffused into mainstream macroeconomics. Real business cycles, animal spirits, and stock market valuation.
Resuscitating real business cycles, in handbook of macroeconomics 1999. Deconstructing the success of real business cycles emi nakamura 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. If this is the first time you use this feature, you will be asked to authorise cambridge core to connect with your account. Journal of monetary economics, 1998 this paper considers the business cycle, asset pricing, and welfare effects of increased risk aversion, while holding intertemporal substitution preferences constant. Long and plosser 1983 coined the term real business cycles and used it to describe cycles generated by random changes in technology. Woodford editors, handbook of macroeconomics, elsevier nber working paper version.
Pdf real business cycle theory methodology and tools. As king and rebelo 1999 discuss in resuscitating real business cycles, when persistent technology shocks are fed through a standard real business cycle. Macroeconomic fluctuations and the allocation of time. Mirman 1972 optimal economic growth and uncertainty. This chapter exposits the basic rbc model and shows that it requires large technology shocks to produce. Real business cycle theory methodology and tools article pdf available in economics and sociology 31. It is the outcome of research mainly by kydland and prescott, barro and king, long and plosser, and prescott. Download this paper open pdf in browser add paper to my library. Yet, there is increasing skepticism that technology shocks.
These sources include changes in technology, tax rates and government spending, tastes, government regulation, terms of trade, and energy prices. Weekly breakdown indicates compulsory reading part 1. Introduction business cycle research studies the causes and consequences of the recurrent expansions and contractions in aggregate economic activity that occur in most industrialized countries. Frontiers of real business cycles, 1995, chapter 5. Request pdf resuscitating real business cycles the real business cycle rbc research program has grown spectacularly over the last decade, as its concepts and methods have diffused into. No 7534, nber working papers from national bureau of economic research, inc abstract. Over the last century, exploration of real business cycles. The real business cycle rbc research program has grown spectacularly over the last decade, as its concepts and methods have diffused into mainstream macroeconomics. Real business cycle models the course will cover real business cycle rbc modeling, with a focus on intuition and basic derivations. Center for economic policy research discussion paper no. Yet, there is increasing skepticism that technology shocks are a major source. Rebelo 1999, \resuscitating real business cycles in. Resuscitating real business cycles the effects of a positive productivity shock. Deconstructing the success of real business cycles emi nakamura the empirical success of real business cycle rbc models is often judged by.
Real business cycles are recurrent fluctuations in an economys incomes, products, and factor inputs especially labor that are due to nonmonetary sources. King, journal of economic dynamics and control, 1993, 17. Resuscitating real business cycles lecture 3 consume. Using the url or doi link below will ensure access to this page indefinitely. A t marg return capital investment, interest rate marg return labour real wage rate wealth effect income effect, higher wages will lead to higher income consump. Real business cycle rbc research program has grown spectacularly over the last decade, as its concepts and methods have diffused into mainstream macroeconomics. Later, plosser, summers, mankiw and many other economists gave their views of the real business cycles. Is the technologydriven real business cycle hypothesis. This chapter exposits the basic rbc model and shows that it requires large technology shocks to produce realistic business. Economic growth and business cycles, in cooley, ed. Approximate bandpass filters for economic time series. The real business cycle rbc research program has grown spectacularly over the last two decades, as its concepts and methods have diffused into mainstream macroeconomics. The real business cycle rbc research program has grown specularly over the last decade, as its concepts and methods have diffused into mainstream macroeconomics. Oclcs webjunction has pulled together information and resources to assist library staff as they consider how to handle coronavirus.
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