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RBC Methodology and the Development of Aggregate Economic Theory

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  • Edward Prescott

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Abstract

This essay reviews the development of neoclassical growth theory, a unified theory of aggregate economic phenomena that was first used to study business cycles and aggregate labor supply. The focus of this essay is on real business cycle (RBC) methodology. The contributions reviewed here are ones that illustrate methodological points or extend the applicability of neoclassical growth theory. [ Working Paper 22422]

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  • Edward Prescott, 2016. "RBC Methodology and the Development of Aggregate Economic Theory," Working Papers id:11115, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:11115
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    Cited by:

    1. V. Kerry Smith & Min Qiang Zhao, 2016. "Evaluating Economy-Wide Benefit Cost Analyses," NBER Working Papers 22769, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    neoclassical growth theory; unified theory of aggregate economic phenomena; business cycles; aggregate labor supply; real business cycle (RBC) methodology; dynamic general equilibrium;

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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