Economics & Sociology
ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789XIndex PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
| Title: | REAL BUSINESS CYCLE THEORY – METHODOLOGY AND TOOLS |
| Issue: |
Vol. 3, No 1, 2010
Published date: 20-05-2010 (print) / 20-05-2010 (online) |
| Journal: |
Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459 |
| Authors: | Jakub Gazda |
| Keywords: | modern business cycle theory, real business cycle, hodrick prescott filter, calibration-simulation procedure |
| DOI: | 10.14254/2071-789X.2010/3-1/5 |
| Index PUBMS: | 215747df-aa13-11e7-8eae-080027f4daa0 |
| Language: | English |
| Pages: | 42-48 (7) |
| JEL classification: | B21, B41 |
| Website: | https://www.economics-sociology.eu/?91,en_real-business-cycle-theory-%E2%80%93-methodology-and-tools |
Abstract
The Real Business Cycle (RBC) research program has grown spectacularly over the last two decades, as its concepts and methods have diffused into mainstream macroeconomics. In its primary version it bases on growth model with neoclassical production function which is subject to a stochastic supply shocks. Simultaneously employing in analysis rational agent which decides about labor input and deserved consumption allows to develop model following cyclical fluctuations observed in the economy. In order to do so multistage calibration-simulation procedure is used. The main aim of the article is to present methodological innovations introduced by RBC proponents such as: Hodrick Prescott filter, and multistage calibration-simulation procedure.