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RBCs AND DSGEs: THE COMPUTATIONAL APPROACH TO BUSINESS CYCLE THEORY AND EVIDENCE

Listed author(s):
  • Özer Karagedikli
  • Troy Matheson
  • Christie Smith
  • Shaun P. Vahey

Real business cycle (RBC) and dynamic stochastic general equilibrium (DSGE) methods have become essential components of the macroeconomist's toolkit. This literature review stresses recently developed techniques for computation and inference, providing a supplement to the Romer textbook, which stresses theoretical issues. Many computational aspects are illustrated with reference to the simple divisible labor RBC model. Code and US data to replicate the computations are provided on the internet, together with a number of appendices providing background details. Copyright © 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd.

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Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

Volume (Year): 24 (2010)
Issue (Month): 1 (02)
Pages: 113-136

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Handle: RePEc:bla:jecsur:v:24:y:2010:i:1:p:113-136
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