RBC theory is a class of new classical macroeconomics models in which business-cycle fluctuations are accounted for by real (in contrast to nominal) shocks. Business cycles · Stylized facts · Calibration · Criticisms

The RBC theory explains procyclical productivity quite directly - booms are good draws of technology growth recessions are bad draws. The second puzzle is ...

“Economic fluctuations are optimal responses to uncertainty in the rate of technological change”, as Edward. Prescott puts it (Prescott 1986). Below we present ...

The real business cycle theory argues that macroeconomic instability emerges from shocks to the economy's aggregate supply due to changes in technology and ...

The chapter furthermore explains that the RBC theory views business cycle fluctuations as a pure supply-side phenomenon. The economy is still at full employment ...

30 окт. 2023 г. · RBC Theory emphasizes the role of exogenous shocks, labor market dynamics, and the limited efficacy of monetary policy in explaining economic variations.

Since real business cycle theory describes economic fluctuations as a changing. Walrasian equilibrium, it implies that these fluctuations are efficient.

12 июн. 2010 г. · Business cycles are the results of rational economic agents responding to real shocks optimally—mostly fluctuations in productivity growth. ( ...

Real Business Cycle theory regards stochastic fluctuations in factor produc- tivity as the predominant source of fluc- tuations in economic activity. These.