After having illustrated in Chap. 13 the Harrod’s model and a chaotic specification of it, in this Chapter we are going to prove that (1) real data could be obtained by a suitable calibration of model’s parameters, (2) the calibrated model confirms theoretical predictions (Orlando and Della...

The Real Business Cycle (RBC) models a neoclassical system impacted by random changes on Total Factor Productivity (TFP) caused by exogenous "technology shocks." Its success in calibration tests confirms TFP's crucial role in the cycle yet, by assuming it exogenous, it requires its shocks being...