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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Resuscitating Real Business Cycles
TL;DR: In this paper, the authors show that large technology shocks are needed to produce realistic business cycles, while Solow residuals are sufficiently volatile, these imply frequent technological regress, suggesting the imminent demise of real business cycles.
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Agency Costs, Net Worth, and Business Fluctuations: A Computable General Equilibrium Analysis
TL;DR: In this article, an analysis of the quantitative effects of agency costs in a real business cycle model is presented, showing that these costs can explain why output growth displays positive autocorrelation at short horizons.
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Pitfalls and Opportunities: What Macroeconomists Should Know About Unit Roots
John Y. Campbell,Pierre Perron +1 more
TL;DR: In this article, an introduction to unit root econometrics as applied in macroeconomics is presented, emphasizing the importance of correctly specifying deterministic components of the series and the usefulness of unit root tests not as methods to uncover some -true relation" but as practical devices that can be used to impose reasonable restrictions on the data and to suggest what asymptotic distribution theory gives the best approximation to the finite-sample distribution of coefficient estimates and test statistics.
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Tastes and Technology in a Two-Country Model of the Business Cycle: Explaining International Comovements
TL;DR: In this paper, the authors incorporate nontraded goods in the model and find that the implications for aggregate consumption, investment, and the trade balance are consistent with business-cycle properties of industrialized countries.
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Asset pricing in production economies
TL;DR: In this article, a model with habit formation preferences and capital adjustment costs was proposed to explain the historical equity premium and the average risk-free return while replicating the salient business cycle properties.
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.