The limits of business cycle research: Assessing the real business cycle model


Journal Article

The real business cycle model dominates business cycle research in the new classical tradition. Typically, real business cycle modellers both offer the bold conjecture that business cycles are equilibrium phenomena driven by technology shocks and also novel strategies for assessing the success of the model. This article critically examines the real business model and the assessment strategy, surveys the literature supporting and opposing the model, and evaluates the evidence on the empirical success of the model. It argues that, on the preponderance of the evidence, the real business cycle model is refuted.

Full Text

Duke Authors

Cited Authors

  • Hartley, JE; Hoover, KD; Salyer, KD

Published Date

  • January 1, 1997

Published In

Volume / Issue

  • 13 / 3

Start / End Page

  • 34 - 54

International Standard Serial Number (ISSN)

  • 0266-903X

Digital Object Identifier (DOI)

  • 10.1093/oxrep/13.3.34

Citation Source

  • Scopus