Graduate Macro Theory II: The Real Business Cycle Model
نویسنده
چکیده
I will set the problem up as a decentralized model, studying first the behavior of households and then the behavior of firms. There are two primary ways of setting the model up, which both yield identical solutions. In both households own the firms, but management and ownership are distinct, and so households behave as though firm profits are given. In one formulation firms own the capital stock, and issue both debt and equity to households. In another formulation, households own the capital stock and rent it to firms; firms still issue debt and equity to households. We will go through both formulations. Intuitively these set-ups have to be the same because, either way, households own the capital stock (either directly or indirectly). In both setups I abstract from trend growth, which, as we have seen, does not really make much of a difference anyway.
منابع مشابه
Test of Real Business Cycle Theory in Iran's economy
This paper tests the importance of real shocks as sources of fluctuations in iran’s economy. For this purpose, based on the work of Boschen and Mills, a set of non-monetary variables which can affect economic growth have been selected and by using an illustrative business cycle model in which the production depends on the past and current value of real shocks, the influence 01’ these variables ...
متن کاملGraduate Macro Theory II: Stylized Business Cycle Facts and the Performance of the RBC Model
The convention within the literature is to look at HP detrended data to examine the business cycle. We focus on deviations from the smooth HP trend. There are, of course, alternative ways in which one can look at the cyclical component of the data (e.g. first differences, the Band Pass filter, linear detrending, etc.). “Business cycle moments” focus primarily on a variety of second moments. In ...
متن کاملGraduate Macro Theory II: Stylized Business Cycle Facts and the Quantitative Performance of the RBC Model
The convention within the literature is to look at HP detrended data to examine the business cycle. We focus on deviations from the smooth HP trend. There are, of course, alternative ways in which one can look at the cyclical component of the data (e.g. first differences, the Band Pass filter, linear detrending, etc.). “Business cycle moments” focus primarily on a variety of second moments. In ...
متن کاملDESIGNING AN OPTIMIZATION MODEL FOR PREVENTING THE WASTE TIME IN THE ACTIVITY CYCLE OF AN ORGANIZATION
This article proposes an optimization model for preventing the waste of time in the educational and research activities' cycle of an organization such as a university. For this purpose and in order to increase efficiency and prevent the waste of time; the graph theory models have been used. The educational and research activities diagrams of a supposed university is drawn by the use of graphs t...
متن کاملSeparating the Business Cycle from Other Economic Fluctuations∗
Macroeconomists—especially those studying monetary policy—often view the business cycle as a transitory departure from the smooth evolution of a neoclassical growth model. Important ideas contributed by Friedman, Lucas, and the developers of the sticky-price macro model generate this type of aggregate behavior. But the realbusiness cycle model shows that the neoclassical model implies anything ...
متن کامل