Business Cycles : Fact, Fallacy and Fantasy.
Title:
Business Cycles : Fact, Fallacy and Fantasy.
Author:
Altug, Sumru G.
ISBN:
9789812832788
Personal Author:
Physical Description:
1 online resource (161 pages)
Contents:
Contents -- Preface -- 1. Introduction -- 2. Facts -- 2.1. Defining a Business Cycle -- 2.2. Stylized Facts -- 2.3. The Euro Area Business Cycle -- 2.4. Is There aWorld Business Cycle? -- 2.5. Historical Business Cycles -- 3. Models of Business Cycles -- 3.1. An RBC Model -- 3.2. A Numerical Solution -- 3.3. Initial Criticisms -- 3.4. "Puzzles" -- 3.4.1. A Model with Indivisible Labor Supply -- 3.4.2. The Productivity Puzzle -- 3.4.3. Reverse Causality -- 3.5. The Source of the Shocks -- 3.5.1. Investment-Specific Technological Shocks -- 3.5.2. Energy Shocks -- 4. International Business Cycles -- 4.1. Facts -- 4.2. The Role of International Risk Sharing -- 4.2.1. Pareto Optimal Allocations -- 4.2.2. Complete Contingent Claims -- 4.2.3. No Asset Trading -- 4.2.4. Nonspecialization in Endowments -- 4.2.5. Nontraded Goods -- 4.2.6. Trade in Equity Shares -- 4.2.7. Limited Risk Sharing -- 4.3. Other Extensions -- 4.4. Puzzles Revisited -- 5. New Keynesian Models -- 5.1. The Basic Model -- 5.2. Empirical Evidence -- 6. Business Cycles in Emerging Market Economies -- 6.1. A Small Open-Economy Model of Emerging Market Business Cycles -- 6.2. Do Shocks to Trend Productivity Explain Business Cycles in Emerging Market Economies? -- 7. Matching the Model to the Data -- 7.1. Dynamic Factor Analysis -- 7.1.1. Measures of Fit for Calibrated Models -- 7.1.2. Other Applications -- 7.2. GMM Estimation Approaches -- 7.3. The Calibration versus Estimation Debate -- 7.3.1. The Dynamics of Output -- 7.3.2. Calibration as Estimation -- 7.3.3. Nonlinearity in Macroeconomic Time Series -- 7.3.4. The Debate Reconsidered -- 7.4. DSGE Modeling -- 8. Future Areas for Research -- Bibliography -- Index.
Abstract:
This book provides an overview of the modern theory and empirics of business cycles. Written by one of the pioneering authors in this field, it examines the notion of a business cycle and discusses alternative approaches to modeling. Arguably, one of the most important debates in this literature has been the issue of "matching" a business cycle to the data. In their original contribution, Kydland and Prescott (1982) proposed the method of calibration as a way of examining the implications of a business cycle model; yet, even at its inception, this approach came under criticism from a variety of sources. This monograph will examine some of these criticisms and discuss alternative approaches that have been put forward. More generally, it will discuss what lies ahead for modern business cycle theory. Sample Chapter(s). Chapter 1: Introduction (46 KB). Contents: Facts; Models of Business Cycles; International Business Cycles; New Keynesian Models; Business Cycles in Emerging Market Economies; Matching the Model to the Data; Future Areas for Research. Readership: Academic economists; graduate students interested in business cycle theory; policymakers.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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