In this paper I calibrate and simulate the standard Real Business Cycles model for the Romanian economy. In this respect, I use a set of estimated data for capital stock and GDP at quarterly frequency for the period 1991-2002. The results show that the standard RBC can be a starting point for...

I reconsider the empirical relationship between business cycles and economic growth and pose the question: How long are business cycles when we try to distinguish between business cycles and economic growth? There is a common held view - a myth - that the cyclical component has a period up to...

This paper analyses the stylized facts of business cycles in Norway, by comparing different detrending methods. As the choice of the appropriate data transformation depends on the nature of the underlying dynamic properties of the time series, a set of unit root tests are first applied to the...

The first-order condition (FOC) associated with labour in many dynamic general equilibrium models involves only current period variables. Residuals constructed from this FOC are inconsistent with aggregate US data in that they are very large and highly persistent. The persistence suggests that...

We take as a starting point the existence of a joint distribution implied by different dynamic stochastic general equilibrium (DSGE) models, all of which are potentially misspecified. Our objective is to compare "true" joint distributions with ones generated by given DSGEs. This is accomplished...

This Selected Issues paper examines the external linkages of the New Zealand economy. Empirical results from vector autoregressive models suggest that economic activity in Australia tends to have more of a significant direct impact on New Zealand than does activity in the United States....

This paper evaluates what type of models can account for the recent episodes of output drops in Latin America. I develop an open economy version of the business cycle accounting methodology (Chari, Kehoe, and McGrattan, 2007) in which output fluctuations are decomposed into four sources: total...

Ce texte propose une revue des développements récents de la littérature macroéconomique inspirée de l'approche des modèles du cycle réel via l'introduction de différentes facettes de l'activité gouvernementale. A l'aide d'un modèle typique du cycle réel avec gouvernement, nous...

Nous présentons une version simple du modèle dynamique d'équilibre général de la transmission internationale du cycle économique. Nous analysons sa solution et ses prédictions, et nous comparons ses prédictions avec les faits observés des covariations internationales des agrégats...