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How well can business cycle accounting account for business cycles?

Otsu, Keisuke (2012) How well can business cycle accounting account for business cycles? Economics Bulletin, 32 (2). ISSN 1545-2921. (KAR id:44336)

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The business cycle accounting method introduced by Chari, Kehoe and McGrattan (2007) is a useful tool to decompose business cycle fluctuations into their contributing factors. However, the model estimated by the maximum likelihood method cannot replicate business cycle moments computed from data. Moment-based estimation might be an attractive alternative if the purpose of the research is to study business cycle properties such as volatility, persistence and cross-correlation of variables instead of a specific business cycle episode.

Item Type: Article
Additional information: Published online
Subjects: H Social Sciences > HB Economic Theory
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: K. Otsu
Date Deposited: 12 Nov 2014 12:15 UTC
Last Modified: 16 Feb 2021 12:57 UTC
Resource URI: (The current URI for this page, for reference purposes)
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