Show simple item record

dc.contributor.author Hoover, Dr Kevin en_US
dc.contributor.author Salyer, Kevin D. en_US
dc.date.accessioned 2010-03-09T15:41:25Z
dc.date.available 2010-03-09T15:41:25Z
dc.date.issued 1997 en_US
dc.identifier.uri http://hdl.handle.net/10161/2016
dc.description.abstract Real-business-cycle models are assessed by their ability to mimic the covariances and variances of actual business cycle data. Recently, however, advocates of RBC models have used them to fit the historical path of real GDP using the Solow residual as a driving process. We demonstrate that the success of RBC models at matching historical GDP data does not confirm the validity of RBC models. Through simulations we demonstrate that the Solow residual does not carry useful information about technology shocks and that the RBC model does not add incremental information about GDP. RBC models fit historical GDP data entirely because the Solow residual is itself just a noisy measure of GDP. en_US
dc.format.extent 1500636 bytes
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.publisher SSRN eLibrary en_US
dc.subject real business cycle models en_US
dc.subject solow residual en_US
dc.title Technology Shocks or Colored Noise?: Why Real-Business-Cycle Models Cannot Explain Actual Business Cycles en_US
dc.type Journal Article en_US
dc.department Economics

Files in this item

This item appears in the following Collection(s)

Show simple item record