Measuring Business Cycles With Business-cycle Models

Allan Gregory and Gregor Smith

No 901, Working Paper from Economics Department, Queen's University

Abstract: Business cycles may be defined or measured by parametrizing detrending filters to maximize the ability of a business-cycle model to match the moments of the remaining cycles. Thus a theory can be used to guide cycle measurement. We present two applications to U.S. postwar data. In the first application the cycles are measured with a standard, real business cycle model. In the second, they are measured using information on capacity utilization and unemployment rates. Simulation methods are used to describe the properties of the GMM estimators and to allow exact inference.

Keywords: detrending; business cycles (search for similar items in EconPapers)
JEL-codes: C15 C32 E32 (search for similar items in EconPapers)
Pages: 21 pages
Date: 1994-05
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_901.pdf First version 1994 (application/pdf)

Related works:
Journal Article: Measuring business cycles with business-cycle models (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:901

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