Endogenous Business Cycles and the Dynamics of Output, Hours, and Consumption

Stephanie Schmitt-Grohe

American Economic Review, 2000, vol. 90, issue 5, 1136-1159

Abstract: This paper studies the business-cycle fluctuations predicted by a two-sector endogenous-business-cycle model with sector-specific external increasing returns to scale. It focuses on aspects of actual fluctuations that have been identified both as defining features of business cycles and as ones standard real-business-cycle models cannot explain. For empirically realistic calibrations of the degree of returns to scale, the results suggest that endogenous fluctuations do not provide the dynamic element that is missing in existing real-business-cycle models.

JEL-codes: E23 E24 E32 (search for similar items in EconPapers)
Date: 2000
Note: DOI: 10.1257/aer.90.5.1136
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Citations: View citations in EconPapers (76)

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Related works:
Working Paper: Endogenous Business Cycles and the Dynamics of Output, Hours, and Consumption (1999)
Working Paper: Endogenous business cycles and the dynamics of output, hours, and consumption (1999)
Working Paper: Endogenous business cycles and the dynamics of output, hours, and consumption (1998)
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