Hoover, Kevin; Salyer, Kevin - In: Review of Political Economy 10 (1998) 3, pp. 299-327
Typically real-business-cycle models are assessed by their ability to mimic the covariances and variances of actual business cycle data. Recently, however, advocates of RBC models have used them to fit the historical path of real GDP using the Solow residual as a driving process. We demonstrate...