Building blocks of market clearing business cycle models

Author / Creator

Murphy, Kevin M

Available as

Online

Summary

Abstract: We compare "real business cycle" and increasing returns models of. Abstract: economic fluctuations. In these models, business cycles are driven by. Abstract: productivity changes resultin...

Abstract: We compare "real business cycle" and increasing returns models of.

Abstract: economic fluctuations. In these models, business cycles are driven by.

Abstract: productivity changes resulting either from technology shocks or from crucial.

Abstract: building blocks that give both types of models hope of fitting the data.

Abstract: These building blocks include durability of goods, specialized labor.

Abstract: imperfect credit and elastic labor supply. We also present new evidence on.

Abstract: comovernent of both outputs sand labor inputs across sectors and on the.

Abstract: increasing returns model is easier to reconcile with the data than the real.

Abstract: business cycle model.

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