Teaching Real Business Cycles to Undergraduates

Brevik Frode () and Manfred Gärtner ()

University of St. Gallen Department of Economics working paper series 2004 from Department of Economics, University of St. Gallen

Abstract: We start by reviewing the graphical approach to teaching the real business cycle model introduced in Barro (1984). We then look at where this approach cuts corners and suggest refinements. Finally, graphical and exact models are compared by means of impulse response functions. The graphical models yield reliable qualitative results. Sizable quantitative differences exist, but these can partly be remedied by adding appropriate refinements. Used by experienced instructors the graphical analysis of the real business cycle equips students with a first understanding of the economy‘s supply side and generates results that will survive closer scrutiny later in the curriculum.

Keywords: Undergraduate teaching; macroeconomics; real business cycles; fluctuations (search for similar items in EconPapers)
JEL-codes: A22 E32 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2004-01
New Economics Papers: this item is included in nep-dge and nep-mac
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http://ux-tauri.unisg.ch/RePEc/usg/dp2004/dp05_gae_ganz.pdf (application/pdf)

Related works:
Journal Article: Teaching Real Business Cycles to Undergraduates (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:usg:dp2004:2004-05

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