Journal ArticleDOI
Production, growth and business cycles: I. The basic neoclassical model
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In this paper, the authors present the neoclassical model of capital accumulation augmented by choice of labor supply as the basic framework of modern real business cycle analysis and explore the implications of the basic model for perfect foresight capital accumulation and for economic fluctuations initiated by impulses to technology.About:
This article is published in Journal of Monetary Economics.The article was published on 1988-03-01. It has received 1945 citations till now. The article focuses on the topics: Capital accumulation & Real business-cycle theory.read more
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Journal ArticleDOI
Why are capital income taxes so high
TL;DR: The authors showed that although all households agree that capital income taxation should be eliminated in the long run, they do not agree on how to eliminate these taxes, whereas households with little wealth would prefer a reform that is funded mostly by high taxes on initial wealth.
Journal ArticleDOI
Can International Macroeconomic Models Explain Low-Frequency Movements of Real Exchange Rates?
Pau Rabanal,Juan F Rubio-Ramirez +1 more
TL;DR: The authors showed that most of the volatility of real eective exchange rates of major currencies can be allocated to low frequencies (i.e., below business cycle frequencies), which makes the analysis of real exchange rates at all frequencies a more sound exercise than the typical business cycle one, which compares actual data and simulated data after the Hodrick-Prescott …lter is applied.
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Volatility, Growth, and Welfare
Pengfei Wang,Yi Wen,Yi Wen +2 more
TL;DR: The authors constructs an endogenous growth model driven by self-fulfilling expectation shocks to explain the stylized fact that the average growth rate of GDP is related negatively to volatility and positively to capacity utilization.
Journal ArticleDOI
Solow residuals without capital stocks
TL;DR: The authors used synthetic data generated by a prototypical stochastic growth model to assess the accuracy of the Solow residual (Solow, 1957 ) as a measure of total factor productivity (TFP) growth when the capital stock in use is measured with error.
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Methods versus Substance: Measuring the Effects of Technology Shocks on Hours
José-Víctor Ríos-Rull,Frank Schorfheide,Cristina Fuentes-Albero,Maxym Kryshko,Raul Santaeulalia-Llopis +4 more
TL;DR: The authors employ both calibration and modern estimation methods to assess the role of neutral and investment-specific technology shocks in generating fluctuations in hours using a neoclassical stochastic growth model and show how answers are shaped by the identification strategies and not by the statistical approaches.
References
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Journal ArticleDOI
Co-integration and Error Correction: Representation, Estimation and Testing
TL;DR: The relationship between co-integration and error correction models, first suggested in Granger (1981), is here extended and used to develop estimation procedures, tests, and empirical examples.
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Distribution of the Estimators for Autoregressive Time Series with a Unit Root
David A. Dickey,Wayne A. Fuller +1 more
TL;DR: In this article, the limit distributions of the estimator of p and of the regression t test are derived under the assumption that p = ± 1, where p is a fixed constant and t is a sequence of independent normal random variables.
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A Contribution to the Theory of Economic Growth
TL;DR: In this paper, a model of long run growth is proposed and examples of possible growth patterns are given. But the model does not consider the long run of the economy and does not take into account the characteristics of interest and wage rates.
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Increasing Returns and Long-Run Growth
TL;DR: In this paper, the authors present a fully specified model of long-run growth in which knowledge is assumed to be an input in production that has increasing marginal productivity, which is essentially a competitive equilibrium model with endogenous technological change.
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On the mechanics of economic development
TL;DR: In this article, the authors consider the prospects for constructing a neoclassical theory of growth and international trade that is consistent with some of the main features of economic development, and compare three models and compared to evidence.