They assert that monetary policies have no effect on real activity, that fiscal policies influence the economy only through their incentive effects, and that ...

Real business cycle theory is often criticized for its lack of implications for the cyclical behavior of unemployment. This issue has been partially addressed ...

Provides an overview of the real business cycle research agenda, tackling the main theoretical and empirical issues. Concludes that although this ...

Real Business Cycle Theory Criticisms. The real business cycle theory is only one of the views concerning the causes of economic instability. There are other ...

Another major criticism is that real business cycle models can not account for the dynamics displayed by U.S. gross national product. As Larry Summers ... Business cycles · Stylized facts · Calibration · Criticisms

Provides an overview of the real business cycle research agenda, tackling the main theoretical and empirical issues.

Some of the limitations in the real business cycle theory include the fact that theory focuses more on the supply than the demand side variables. The theory ...

Allan Drazen, Sherwin Rosen, and Nasser Saidi provided very helpful criticism of an earlier draft. A version of this paper entitled "Economic Policy and the ...

12 июн. 2010 г. · Several extensions to the basic. RBC model are introduced in Section 5 while some criticisms and challenges to the theory will be presented in ...