Wang, Pengfei; Wen, Yi - In: Review of Economic Dynamics 14 (2011) 4, pp. 705-724
The research led by Gali (AER 1999) and Basu, Fernald, and Kimball (AER 2006) raises two important questions regarding the validity of the RBC theory: (i) How important are technology shocks in explaining the business cycle? (ii) Do impulse responses to technology shocks found in the data reject...
