This chapter develops a toolkit of neoclassical macroeconomic models, and applies these models to the US economy from 1929 to 2014. We first filter macroeconomic time series into business cycle and long-run components, and show that the long-run component is typically much larger than the...

The book revisits the subject matter of macroeconomic theory in a two-sector disequilibrium model inspired by the structural theories of the business cycle developed by Tugan-Baranowski, Aftalion, Fanno, and Lowe. The functioning of each market is modeled following Hicks: the features of each...