Indeterminacy, aggregate demand, and the real business cycle Export

@article{benhabib-wen-2004, abstract = {We show that under indeterminacy aggregate demand shocks are able to explain not only aspects of actual fluctuations that standard RBC models predict fairly well, but also aspects of actual fluctuations that standard RBC models cannot explain, such as the hump-shaped, trend reverting impulse responses to transitory shocks found in US output (Cogley and Nason, Am. Econom. Rev. 85 (1995) 492); the large forecastable movements and comovements of output, consumption and hours (Rotemberg and Woodford, Am. Econom. Rev. 86 (1996) 71); and the fact that consumption appears to lead output and investment over the business cycle. Indeterminacy arises in our model due to capacity utilization and mild increasing returns to scale.}, author = {Benhabib, Jess and Wen, Yi}, citeulike-article-id = {121648}, citeulike-linkout-0 = {http://dx.doi.org/10.1016/j.jmoneco.2003.08.011}, citeulike-linkout-1 = {http://www.sciencedirect.com/science/article/B6VBW-4BWMTRW-1/2/fc15a9b0ffd177d93184749abd7b9583}, doi = {10.1016/j.jmoneco.2003.08.011}, journal = {Journal of Monetary Economics}, keywords = {aarmacro, asset\_pricing, demand\_shocks, macroeconomics}, month = {April}, number = {3}, pages = {503--530}, posted-at = {2005-03-11 14:30:03}, priority = {3}, title = {Indeterminacy, aggregate demand, and the real business cycle}, url = {http://dx.doi.org/10.1016/j.jmoneco.2003.08.011}, volume = {51}, year = {2004} }

TY - JOUR ID - benhabib-wen-2004 L3 - citeulike-article-id:121648 N2 - We show that under indeterminacy aggregate demand shocks are able to explain not only aspects of actual fluctuations that standard RBC models predict fairly well, but also aspects of actual fluctuations that standard RBC models cannot explain, such as the hump-shaped, trend reverting impulse responses to transitory shocks found in US output (Cogley and Nason, Am. Econom. Rev. 85 (1995) 492); the large forecastable movements and comovements of output, consumption and hours (Rotemberg and Woodford, Am. Econom. Rev. 86 (1996) 71); and the fact that consumption appears to lead output and investment over the business cycle. Indeterminacy arises in our model due to capacity utilization and mild increasing returns to scale. IS - 3 JF - Journal of Monetary Economics EP - 530 TI - Indeterminacy, aggregate demand, and the real business cycle VL - 51 SP - 503 KW - aarmacro KW - asset_pricing KW - demand_shocks KW - macroeconomics AU - Benhabib, Jess AU - Wen, Yi PY - 2004/04// UR - http://dx.doi.org/10.1016/j.jmoneco.2003.08.011 ER -