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

Real business cycle theory is a theory that suggests that business cycles are a result of technological changes and the availability of resources.

Classical Model. Real business cycle theory seeks to explain business cycles via the classical model. There is general equilibrium: demand.

The real business cycle theory makes the fundamental assumption that an economy witnesses all these phases of business cycle due to technology shocks.

The business cycle is, according to this theory, the natural and efficient response of the economy to changes in the available production technology. In this ...

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

RBC theorists contend that the same theory that explains long- run growth should also explain business cycles.

Introduction. Real business cycle theory is built on the assumption that there are large fluctuations. in the rate of technological progress. It is not a new ...

Some real business cycle theories emphasize changes in the technologies of different sectors, rather than economy-wide changes in technology (Long and Plosser, ...

Real business cycle (RBC) theories are nonmonetary explanations of the business cycle. Supporters of RBC theory claim that business cycles arise due to ...