Gomme, Paul; Ravikumar, B.; Rupert, Peter - In: Review of Economic Dynamics 14 (2011) 2, pp. 262-278
A widely cited failing of real business cycle models is their inability to account for the cyclical patterns of … equity in the neoclassical growth model, papers in the real business cycle literature that successfully account for the time … basic real business cycle model captures most of the observed variability in the return to capital. What is needed is a …