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 abstentionist stance. They admitted that, because of its exceptional character, an explanation of the Great Depression was beyond the grasp of the equilibrium approach to the...