This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Fluctuations in Convex Models of Endogenous Growth II: Business Cycle Properties Author info | Abstract | Publisher info | Download info | Related research | Statistics Larry E. Jones (University of Minnesota)
Rodolfo E. Manuelli (University of Wisconsin)
Henry E. Siu (University of British Columbia)
Additional information is available for the following
registered author(s):
Using ideas from the endogenous growth literature, we present a model of the endogenous determination of productivity growth based on individual worker decisions about human capital investment. We calibrate a version of the model to match long run growth facts from the US and study the business cycle properties of this model. This approach offers improvements along several dimensions over standard exogenous growth methodologies. Most importantly, our stochastic endogenous growth model generates much greater serial correlation in output growth and labor supply volatility relative to its real business cycle counterpart. We conclude that using the extra discipline of reproducing the trend productivity growth features of the data endogenously constitutes an important missing component from the real business cycle approach. (Copyright: Elsevier)
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics .
Volume (Year): 8 (2005)
Issue (Month): 4 (October)
Pages: 805-828
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:red:issued:v:8:y:2005:i:4:p:805-828Contact details of provider: Postal: Review of Economic Dynamics Academic Press Editorial Office 525 "B" Street, Suite 1900 San Diego, CA 92101 Fax: 1-860-486-4463 Email: Web page: http://www.EconomicDynamics.org/review.htm More information through EDIRC
Order Information: Email: Web: http://www.EconomicDynamics.org/RED17.htm
For technical questions regarding this item, or to correct its listing, contact: (Christian Zimmermann).
Keywords: Business cycle fluctuations ; Human capital investment ; Productivity growth ; Other versions of this item:
Find related papers by JEL classification: E00 - Macroeconomics and Monetary Economics - - General - - - General E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Greenwood, J. & Hercowitz, Z., 1991.
"The Allocation of Capital and Time Over the Business Cycle ,"
RCER Working Papers
268, University of Rochester - Center for Economic Research (RCER).
Other versions:
Greenwood, J. & Hercowitz, Z., 1991.
"The Allocation of Capital and Time Over the Business Cycles ,"
UWO Department of Economics Working Papers
9104, University of Western Ontario, Department of Economics.
Greenwood, Jeremy & Hercowitz, Zvi, 1991.
"The Allocation of Capital and Time over the Business Cycle ,"
Journal of Political Economy ,
University of Chicago Press, vol. 99(6), pages 1188-214, December.
[Downloadable!] (restricted) Lawrence J. Christiano & Richard M. Todd, 1996.
"Time to plan and aggregate fluctuations ,"
Quarterly Review ,
Federal Reserve Bank of Minneapolis, issue Win, pages 14-27.
[Downloadable!]
Hansen, Gary D., 1985.
"Indivisible labor and the business cycle ,"
Journal of Monetary Economics ,
Elsevier, vol. 16(3), pages 309-327, November.
[Downloadable!] (restricted)
Francesco Caselli, 1999.
"Technological Revolutions ,"
American Economic Review ,
American Economic Association, vol. 89(1), pages 78-102, March.
[Downloadable!] (restricted)
Jess Benhabib & Richard Rogerson & Randall Wright, 1991.
"Homework in macroeconomics: household production and aggregate fluctuations ,"
Staff Report
135, Federal Reserve Bank of Minneapolis.
[Downloadable!]
Other versions: Jones, Larry E & Manuelli, Rodolfo E & Rossi, Peter E, 1993.
"Optimal Taxation in Models of Endogenous Growth ,"
Journal of Political Economy ,
University of Chicago Press, vol. 101(3), pages 485-517, June.
[Downloadable!] (restricted)
Cogley, Timothy & Nason, James M, 1995.
"Output Dynamics in Real-Business-Cycle Models ,"
American Economic Review ,
American Economic Association, vol. 85(3), pages 492-511, June.
[Downloadable!] (restricted)
Other versions: Merz, Monika, 1995.
"Search in the labor market and the real business cycle ,"
Journal of Monetary Economics ,
Elsevier, vol. 36(2), pages 269-300, November.
[Downloadable!] (restricted)
Andolfatto, David, 1996.
"Business Cycles and Labor-Market Search ,"
American Economic Review ,
American Economic Association, vol. 86(1), pages 112-32, March.
[Downloadable!] (restricted)
Einarsson, Tor & Marquis, Milton H., 1999.
"Formal Training, On-the-Job Training and the Allocation of Time ,"
Journal of Macroeconomics ,
Elsevier, vol. 21(3), pages 423-442, July.
[Downloadable!] (restricted)
Other versions: Einarsson, Tor & Marquis, Milton H., 1998.
"An RBC model with growth: the role of human capital ,"
Journal of Economics and Business ,
Elsevier, vol. 50(5), pages 431-444, September.
[Downloadable!] (restricted)
Other versions: Alvarez, Fernando & Stokey, Nancy L., 1998.
"Dynamic Programming with Homogeneous Functions ,"
Journal of Economic Theory ,
Elsevier, vol. 82(1), pages 167-189, September.
[Downloadable!] (restricted)
Jones, Larry E & Manuelli, Rodolfo E, 1990.
"A Convex Model of Equilibrium Growth: Theory and Policy Implications ,"
Journal of Political Economy ,
University of Chicago Press, vol. 98(5), pages 1008-38, October.
[Downloadable!] (restricted)
Judd, Kenneth L., 1992.
"Projection methods for solving aggregate growth models ,"
Journal of Economic Theory ,
Elsevier, vol. 58(2), pages 410-452, December.
[Downloadable!] (restricted)
Other versions: Larry E. Jones & Rodolfo E. Manuelli & Henry E. Siu & Ennio Stacchetti, 2005.
"Fluctuations in Convex Models of Endogenous Growth I: Growth Effects ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 8(4), pages 780-804, October.
[Downloadable!] (restricted)
Perli, Roberto & Sakellaris, Plutarchos, 1998.
"Human capital formation and business cycle persistence ,"
Journal of Monetary Economics ,
Elsevier, vol. 42(1), pages 67-92, June.
[Downloadable!] (restricted)
Heckman, James J, 1976.
"A Life-Cycle Model of Earnings, Learning, and Consumption ,"
Journal of Political Economy ,
University of Chicago Press, vol. 84(4), pages S11-44, August.
[Downloadable!] (restricted)
Brayton, Flint & Mauskopf, Eileen, 1985.
"The federal reserve board MPS quarterly econometric model of the US economy ,"
Economic Modelling ,
Elsevier, vol. 2(3), pages 170-292, July.
[Downloadable!] (restricted)
Collard, Fabrice, 1998.
"Spectral and persistence properties of cyclical growth ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 23(3), pages 463-488, November.
[Downloadable!] (restricted)
Burnside, Craig & Eichenbaum, Martin, 1996.
"Factor-Hoarding and the Propagation of Business-Cycle Shocks ,"
American Economic Review ,
American Economic Association, vol. 86(5), pages 1154-74, December.
[Downloadable!] (restricted)
Other versions: Yoram Ben-Porath, 1967.
"The Production of Human Capital and the Life Cycle of Earnings ,"
Journal of Political Economy ,
University of Chicago Press, vol. 75, pages 352.
[Downloadable!] (restricted)
King, Robert G. & Rebelo, Sergio T., 1999.
"Resuscitating real business cycles ,"
Handbook of Macroeconomics ,
in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 14, pages 927-1007
Elsevier.
[Downloadable!] (restricted)
Other versions: King, Robert G. & Plosser, Charles I. & Rebelo, Sergio T., 1988.
"Production, growth and business cycles : I. The basic neoclassical model ,"
Journal of Monetary Economics ,
Elsevier, vol. 21(2-3), pages 195-232.
[Downloadable!] (restricted)
Lucas, Robert Jr., 1988.
"On the mechanics of economic development ,"
Journal of Monetary Economics ,
Elsevier, vol. 22(1), pages 3-42, July.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Max Gillman & Mark N Harris & Michal Kejak, 2007.
"The Interaction of Inflation and Financial Development with Endogenous Growth ,"
Money Macro and Finance (MMF) Research Group Conference 2006
29, Money Macro and Finance Research Group.
[Downloadable!]
Ilaski Barañano & Paz Moral, 2007.
"Consumption-Leisure Trade-offs and Persistency in Business Cycles ,"
BILTOKI
200705, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
[Downloadable!]
Paul Pichler, 2007.
"On the accuracy of low-order projection methods ,"
Economics Bulletin ,
Economics Bulletin, vol. 3(50), pages 1-8.
[Downloadable!]
Arato, Hiroki, 2008.
"Optimal operational monetary policy rules in an endogenous growth model: a calibrated analysis ,"
MPRA Paper
8547, University Library of Munich, Germany.
[Downloadable!]
Other versions: François Gourio, 2009.
"Disasters Risk and Business Cycles ,"
NBER Working Papers
15399, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Konstantinos Angelopoulos & Jim Malley & Apostolis Philippopoulos, 2008.
"Welfare implications of public education spending rules ,"
Working Papers
2008_37, Department of Economics, University of Glasgow.
[Downloadable!]
Other versions: Konstantinos Angelopoulos & Apostolis Philippopoulos & Vanghelis Vassilatos, 2007.
"Rent-seeking competition from state coffers in a calibrated DSGE model of the euro area ,"
Working Papers
2007_29, Department of Economics, University of Glasgow.
[Downloadable!]
Larry E. Jones & Rodolfo E. Manuelli & Henry E. Siu & Ennio Stacchetti, 2005.
"Fluctuations in Convex Models of Endogenous Growth I: Growth Effects ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 8(4), pages 780-804, October.
[Downloadable!] (restricted)
Benk, Szilárd & Gillman, Max & Kejak, Michal, 2008.
"US Volatility Cycles of Output and Inflation, 1919-2004: A Money and Banking Approach to a Puzzle ,"
Cardiff Economics Working Papers
E2008/28, Cardiff University, Cardiff Business School, Economics Section.
[Downloadable!]
Other versions: Konstantinos Angelopoulos & Apostolis Philippopoulos & Vanghelis Vassilatos, 2006.
"Rent-Seeking Competition from State Coffers: A Calibrated DSGE Model of the Euro Area ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Access and
download statistics Did you know? The RePEc project started in 1997. Its precursor, NetEc, dates back to 1993.
This page was last updated on 2009-11-20.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .