RBCs and DSGEs:The Computational Approach to Business Cycle Theory and Evidence

Ozer Karagedikli, Troy Matheson (), Christie Smith () and Shaun Vahey

No DP2007/15, Reserve Bank of New Zealand Discussion Paper Series from Reserve Bank of New Zealand

Abstract: 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 (often Bayesian) techniques for computation and inference, providing a supplement to the Romer (2006) textbook treatment which stresses theoretical issues. Many computational aspects are illustrated with reference to the simple divisible labour RBC model familiar to graduate students from King, Plosser and Rebelo (1988), Christiano and Eichenbaum (1992), Campbell (1994) and Romer (2006). Code and US data to replicate the computations are provided on the Internet, together with a number of appendices providing background details.

JEL-codes: C11 C22 E17 E32 E52 (search for similar items in EconPapers)
Pages: 62 p.
Date: 2007-11
New Economics Papers: this item is included in nep-cba, nep-dge, nep-ecm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: RBCs AND DSGEs: THE COMPUTATIONAL APPROACH TO BUSINESS CYCLE THEORY AND EVIDENCE (2010)
Working Paper: RBCs and DSGEs: The Computational Approach to Business Cycle Theory and Evidence (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:nzb:nzbdps:2007/15

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