Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

Home Page
Programme
Papers
Presenters
 
Contact Us
Search this CD-ROM for: View the Latest Programme Information

ARE TASTE AND TECHNOLOGY PARAMETERS STABLE? A TEST OF "DEEP" PARAMETER STATBILITY IN REAL BUSINESS CYCLE MODELS OF THE U.S. ECONOMY


Category: Econometrics
PARAMETER STABILITY
Monday 26th August 2002, 14:30 - 16:00, Room: 4.9
Session Chair(s): Jesus Crespo-Cuaresma, University of Vienna, AUSTRIA

Presenter(s): Swaine, Daniel

Co-Author(s): none

Keyword(s): Business Cycles, Neoclassical Growth Models, Real Business Cycle models, Stochastic Growth models

JEL(s): C32

Abstract:

Lucas criticized Keynesian models because of parametric instability. For many economists, the "Lucas critique" provided a reason to replace Keynesian models with equilibrium models of the business cycle. One example of the equilibrium approach is the Real Business Cycle (RBC) model. However, RBC models have not been subjected to the same scrutiny of tests of parameter instability. We present a prototypical RBC model and subject it to structural change tests. Our results document evidence of extensive parameter instability. Thus, the "Lucas critique is applicable and we conclude that the proptypical RBC model has an invalid structural form.


View Paper

View PDF File

Filesize: 539 kb
Find this file in the
\Papers\1488\
folder of this CD-ROM.

Latest Details
View this paper in the
online Programme

Customise
Customise your Event Programme to include your favourite papers, and email details of papers to friends and colleagues with the
online Programme


Paper Reference Number: 1488

TOP OF PAGE
HOME
Econometric Society
57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

WebMeets.com Event Management LLP
Congress Home Page: http://www.eea-esem2002.it/
Programme Home Page: http://www.eea-esem.com/EEA-ESEM/ESEM2002/Prog/
Programme and CD generated with WebMeets.com Programme Management Software
Congress Programme Organized by FEEM

This page was created on Tuesday, 9th July 2002 at 19:22 GMT.