Indeterminacy, aggregate demand and the real business cycle

Article Abstract:

A study shows that in an under indeterminate real business cycle (RBC) model with capacity utilization and mild increasing returns to scale, aggregate demand shocks can play a pivotal role in explaining actual economic fluctuations. The analysis brings the RBC theory into closer conformity with the actual data.

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Measurement error in general equilibrium: the aggregate effects of noisy economic indicators

Article Abstract:

The business cycle implications of noisy economic indicators in the context of a dynamic general equilibrium model were analyzed. The results suggested that the problem of noisy economic data would not disappear soon thus making the need to understand its implications for business cycle fluctuations.

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Heterogeneous forecasts and aggregate dynamics

Article Abstract:

Research developing a model for dynamic economic equilibrium with different degrees of sophistication in economic forecasting is presented. Particular attention is given to the effects of the agents forecasting by using the rule of thumb on the economic aggregate properties.

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