|
| |
| Keisuke Otsu |
| |
| ''How well can business cycle accounting account for business cycles?'' |
| ( 2012, Vol. 32 No.2 ) |
| |
| |
| 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. |
| |
| |
| Keywords: Business Cycle Accounting; Business Cycle Moments |
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
E1 - General Aggregative Models: General |
| |
| Manuscript Received : Dec 03 2011 | | Manuscript Accepted : Jun 26 2012 |
|
