An Outsider's Guide to Real Business Cycle Modeling
During the past decade, real business cycle (RBC) modeling has won a large market share in macroeconomic research. Though the economics are familiar, the computational techniques still appear inaccessible to many economists. The author exposes some of the “Secrets of the RBC Temple” by describing—from an outsider’s vantage—the specification, calibration, solution and evaluation of one such model.
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