Abstract
The field of Real Business Cycle theory has seen some of the most notable developments in macroeconomics in the last decade. Earlier articles - Kydlanda nd Prescott(1982), Long and Plosser(1983) and Hansen(1985)- are now renowred in this field. In recent years some researchers have investigated more complex models. For example, Cooley and Hansen(1989)’s model includes money, and Christiano and Eichenbaum(1988) introduce government expenditure into the model. Further, Ohkusa(1993) analyzes the effect of money creation on the business cycle. RBC theory can be appreciated not only as neoclassical business cycle theory but also as a useful framework for macro-dynamics.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Altug, S. (1989), “Time-to-Build and Aggregate Fluctuations: Some New Evidence,” International Economic Review, 30, pp. 889–920.
Barro, R.J. (1977),“Unanticipated Money Growth and Unemployment in the United States,” American Economic Review, 67, 101–115.
Barro, R.J. (1978),“Unanticipated Money, Output and the Price Level in the United States,” Journal of Political Economy, 86, 549–580.
Baxter, M. (1991), “Business Cycles, Stylized Facts, and the Exchange Rate Regime: Evidence from the United States,” Journal of International Money and Finance, 101, pp. 71–88.
Burnside, C., M. Eichenbaum and S. Rebelo (1990), “Labor Hoarding and the Business Cycle,” NBER Working Paper, No. 3556.
Cho, J. (1990), “Ex Post Heterogeneity and the Business Cycle,” Queen’s University Discussion Paper, No. 788.
Christiano, L.J. and M. Eichenbaum (1988), “Is Theory Ahead of Measurement? Current Real Business Cycle Theories and Aggregate Labor Market Fluctuations,” NBER Working Paper, No. 2700.
Christiano, L.J. (1990), “Linear-Quadratic Approximation and Value Function Iteration: A Comparison,” Journal of Business and Economics Statistics, 8, pp. 99–114.
Cooley, T.F. and G.D. Hansen (1989), “The Inflation Tax in a Real Business Cycle Model,” American Economic Review, 79, pp. 733–748.
Eichenbaum, M. (1991),”Real Business-Cycle Theory: Wisdom or Whimsy?,” Journal of Economic Dynamics and Control, 15, pp. 607–626.
Gersch, W. and G. Kitagawa (1983), “The Prediction of Time Series with Trend and Seasonally,” Journal of Business and Economic Statistics, 1, pp. 253–264.
Greenwood, J., Z. Hurcowitz and G.W. Huffman (1988), “Investment, Capacity Utilization, and the Real Business Cycle Theory,” American Economic Review, 78, pp. 402–417.
Harvey, A.C. (1989), Forecasting, Structural Time Series Models and the Kaiman Filter, Cambridge University Press.
Kitagawa, G. and W. Gersch (1984), “A Smoothness Prior-State Space Modeling of Time Series with Trend and Seasonality,” Journal of American Statistical Association, 79, pp. 378–389.
Kydland, F. and E. Prescott (1982), “Time to Build and Aggregate Fluctuations,” Econometrica, 50, pp. 1345–1370.
Kydland, F. and E. Prescott (1989), “Hours and Employment Variation in Business Cycle Theory,” Discussion Paper No. 17, Institute for Empirical.
Long, J.B. and C.I. Plosser (1983), “Real Business Cycle,” Journal of Political Economy, 91, pp.39–69.
Mankiw, N.G., J.J. Rotemberg and L.H. Summers (1985), “Intertemporal Substitution in Macroeconomics,” Quarterly Journal of Economics, 100, pp. 225–251.
Murphy, K. and R.H. Topel (1985), “Estimation and Inference in Two-Step Econometric Models,” Journal of Business and Economic Statistics, 3, pp.370–379.
Ohkusa, Y. (1993), “Money Creation System in the Real Business Cycle Theory,” Economics Letters, 42, pp.367–371.
Rouwenhorst, K.G. (1991), “Time to Build and Aggregate Fluctuations: A Reconsideration,” Journal of Monetary Economics, 27, pp. 241–254.
Sargent, T.J. (1987), Dynamic Macroeconomic Theory, Harvard University Press.
Sims, C.A. (1990), “Solving the Stochastic Growth Model by Backsolving with a Particular Nonlinear Form for the Decision Rule,” Journal of Business and Economics Statistics, 8, pp. 45–48.
Smith, J. and M. McAleer (1993), “On the Robustness of Barro’s New Classical Unemployment Model,” Applied Economics, 25, 349–360.
Stock, J.H. and M.W. Watson (1989), “New Indexes of Coincident and Leading Economic Indicator,” NBER Macroeconomics Annual 1989, pp. 351–394.
Stokey, N.L. and R.E. Lucas (1989), Recursive Methods in Economic Dynamics, Harvad University Press.
Taylor, J.B. and H. Uhlig (1990), “Solving Nonlinear Stochastic Growth: A Comparison of Alternative Solution Methods,” Journal of Business and Economic Statistics, 8, pp. 1–18.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1996 Springer Science+Business Media Dordrecht
About this chapter
Cite this chapter
Ohkusa, Y. (1996). Monetary Shock Does Not Matter in Japan: A Kalman Filter Approach to Real Business Cycle Theory. In: Sato, R., Ramachandran, R., Hori, H. (eds) Organization, Performance and Equity. Research Monographs in Japan-U.S. Business & Economics, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-6267-2_13
Download citation
DOI: https://doi.org/10.1007/978-1-4615-6267-2_13
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-7876-1
Online ISBN: 978-1-4615-6267-2
eBook Packages: Springer Book Archive