Arora, Vipin; Gomis-Porqueras, Pedro - College of Business and Economics, Australian National … - 2011
We show the importance of endogenous oil prices and production in the real business cycle framework. Endogenising these … variables improves the model’s predictions of business cycle statistics, oil related and non-oil related, relative to a … the standard real business cycle model and variants cannot match the oil-related and business cycle facts. In contrast …