The Par Model versus the Kydla D-prescott

In this novel paper Michael Parkin puts forth a new real business cycle model, proposes a new method to test the model, and carries out the: proposed method using U.S. annual data from 1954 through 1986. The model differs in several ways from the well-known Kydland-Prescott type real business cycle model. The testing method also differs from well-known methods used to test real business cycle models, or other structural models. ents on the paper I will focus on these differencesI consider the model first and then the testing methods.