Abstract
THAT WNE IS NOT MADE in a day has long been recognized by economists (e.g., Bohm-Bawerk [6]). But, neither are ships nor factories built in a day. A thesis of this essay is that the assumption of multiple-period construction is crucial for explaining aggregate fluctuations. A general equilibrium model is developed and fitted to U.S. quarterly data for the post-war period. The co-movements of the fluctuations for the fitted model are quantitatively consistent with the corre sponding co-movements for U.S. data. In addition, the serial correlations of cyclical output for the model match well with those observed.
| Original language | English (US) |
|---|---|
| Title of host publication | Real business cycles |
| Subtitle of host publication | A Reader |
| Publisher | Taylor and Francis |
| Pages | 57-82 |
| Number of pages | 26 |
| ISBN (Electronic) | 9781134694792 |
| ISBN (Print) | 0415165687 |
| DOIs | |
| State | Published - Jan 1 2013 |
| Externally published | Yes |
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
- General Business, Management and Accounting