Real Business Cycle theory

URI: https://gptkb.org/entity/Real_Business_Cycle_theory
GPTKB entity
Statements (33)
Predicate Object
gptkbp:instanceOf gptkb:economic_policy
gptkbp:abbreviation gptkb:RBC_theory
gptkbp:assumes capital accumulation
rational expectations
representative agent
intertemporal optimization
labor-leisure choice
markets are competitive
prices are flexible
gptkbp:awardReceived gptkb:Nobel_Prize_in_Economics_(Kydland_and_Prescott,_2004)
gptkbp:contrastsWith gptkb:Keynesian_economics
gptkbp:criticizedFor Keynesian economists
neglecting monetary factors
New Keynesian economists
underestimating role of demand shocks
gptkbp:emphasizes technology shocks
productivity shocks
gptkbp:explains economic fluctuations as responses to real shocks
gptkbp:field macroeconomics
gptkbp:focusesOn business cycle fluctuations
gptkbp:hasModel gptkb:dynamic_stochastic_general_equilibrium_(DSGE)_models
https://www.w3.org/2000/01/rdf-schema#label Real Business Cycle theory
gptkbp:influenced modern macroeconomic modeling
gptkbp:influencedBy gptkb:Robert_Lucas
John Muth (rational expectations)
gptkbp:notableFigure gptkb:Finn_E._Kydland
gptkb:Edward_C._Prescott
gptkbp:originatedIn 1980s
gptkbp:publishedIn Journal of Political Economy (seminal papers)
gptkbp:relatedTo gptkb:New_Classical_Macroeconomics
Neoclassical growth theory
gptkbp:bfsParent gptkb:New_Keynesian_economics
gptkbp:bfsLayer 6