Recessions and Recoveries in Real Business Cycle Models

Nathan Balke and Mark Wynne

Economic Inquiry, 1995, vol. 33, issue 4, 640-63

Abstract: The authors evaluate the ability of a simple real business cycle model to generate business cycles in the classical NBER sense of the term, where recessions are periods of absolute declines in economic activity. They use the 'phase' classification of Arthur F. Burns and Wesley C. Mitchell (1946) to determine the 'shape' of the business cycle and to look for asymmetries between expansions and contractions. The authors show that such a model can generate business cycles of plausible duration and depth but cannot match the actual 'shape' of the business cycle. Nonlinear models, such as Milton Friedman's (1993) 'plucking' model may more closely match the observed shape. Copyright 1995 by Oxford University Press.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (23)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ecinqu:v:33:y:1995:i:4:p:640-63

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Economic Inquiry is currently edited by Preston McAfee

More articles in Economic Inquiry from Western Economic Association International Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().