Michel, DE VROEY; Luca, PENSIEROSO - Institut de Recherche Économique et Sociale (IRES), … - 2005
Is the Great Depression amenable to real business cycle theory ? In the 1970s and 1980s Lucas and Prescott took an … the grasp of the equilibrium approach to the business cycle. However while Lucas stuck to this view, we show that Prescott … of opinion and produce a first assessment of real business cycle models of the Great Depression. We claim that the fact …