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Production, growth and business cycles: I. The basic neoclassical model

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TLDR
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.
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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.

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International risk-sharing and non-traded goods

TL;DR: This article showed that the high correlation between savings and investment, the low cross-country correlation between consumption growth rates and the home bias in investment portfolios are consistent with complete financial markets when agents face stochastic fluctuations in the output of non-traded goods.
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Consumption, real exchange rates and the structure of international asset markets

TL;DR: In this article, it was shown that high-frequency fluctuations of consumption and real exchange rates are consistent with unrestricted international trade in risk-free bonds in the US, Japan, France, UK, Italy, Canada and Sweden.
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The Bond Premium in a DSGE Model with Long-Run Real and Nominal Risks

TL;DR: In this article, the authors show that introducing Epstein-Zin preferences into a canonical DSGE model can also produce a large and variable term premium without compromising the model's ability to model key macroeconomic variables.
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How should environmental policy respond to business cycles? Optimal policy under persistent productivity shocks

TL;DR: In this paper, the authors use a dynamic stochastic general equilibrium real business cycle model that includes a pollution externality to estimate the relationship between the cyclical components of carbon dioxide emissions and US GDP and find it to be inelastic.
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Theory, Measurement, and Calibration of Macroeconomic Models

TL;DR: In this paper, the authors extended and refined the calibration methodology along several important dimensions, such as accounting for home production is important both in measuring calibration targets and in organizing the data in a model-consistent fashion.
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

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.
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