Cúrdia, Vasco; Reis, Ricardo - Federal Reserve Bank of New York - 2010
The dynamic stochastic general equilibrium (DSGE) models used to study business cycles typically assume that exogenous … disturbances. Our second contribution is a reexamination of U.S. business cycles. We find that allowing for correlated disturbances … disturbances play a larger role in the business cycle than previously ascribed, while changes in markups are less important. …