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Where's the beef? the trivial dynamics of real business cycle models

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  • Yi Wen

Abstract

The extremely weak propagation mechanisms of real business cycle (RBC) models are well acknowledged, and some effort has been devoted to improving the models on this dimension. This paper builds on these efforts to provide an explicit explanation of why various existing RBC models do not replicate real world business cycles, and discusses modifications necessary to bring real business cycle theory into closer conformity with the data.

Suggested Citation

  • Yi Wen, 2005. "Where's the beef? the trivial dynamics of real business cycle models," Working Papers 2005-039, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:fedlwp:2005-039
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    File URL: http://research.stlouisfed.org/wp/2005/2005-039.pdf
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    References listed on IDEAS

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    6. King, Robert G. & Plosser, Charles I. & Rebelo, Sergio T., 1988. "Production, growth and business cycles : I. The basic neoclassical model," Journal of Monetary Economics, Elsevier, vol. 21(2-3), pages 195-232.
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    8. Burnside, Craig & Eichenbaum, Martin & Rebelo, Sergio, 1993. "Labor Hoarding and the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 245-273, April.
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    Cited by:

    1. Christian Calmès & Raymond Théoret, 2009. "The Non-Convexity Issues in a Limited-Commitment Economy," RePAd Working Paper Series UQO-DSA-wp012009, Département des sciences administratives, UQO.

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    Keywords

    Business cycles;

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