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Journal ArticleDOI

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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Time to build and aggregate fluctuations

TL;DR: In this paper, the authors study the contribution of time to build to the explanation of business cycle phenomena using a simple version of the neoclassical model and show that it is not evident that multi-period construction is crucial to the theory of fluctuations.
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Technical progress and aggregate fluctuations

TL;DR: In this paper, the authors compare the cyclical fluctuations exhibited by a stochastic growth model under various stochastically processes governing technical change, all of which are highly autocorrelated.
Posted Content

A Reappraisal of the Inflation-Unemployment Tradeoff

TL;DR: In this article, the authors propose a theory of "frictional growth" describing the interplay between nominal frictions and money growth, and show that there is a long-run inflation-unemployment tradeoff.
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An Estimated DSGE Model: Explaining Variation in Nominal Term Premia, Real Term Premia, and Inflation Risk Premia

TL;DR: In this paper, a DSGE model is developed to explain variation in the nominal and real term structure along with inflation surveys and four macro variables in the UK economy, and the model is estimated based on a third-order approximation to allow for time-varying term premia.
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Cyclical wage movements in emerging markets compared to developed economies: The role of interest rates

TL;DR: This paper showed that real wages are positively correlated with output and, on average, lag output by about one quarter in emerging markets, while there are no systematic patterns in developed economies, and real wage volatility is about twice as high in emerging market compared with developed economies.
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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