Evidence on a DSGE Business Cycle Model Subject to Neutral and Investment-Specific Technology Shocks Using Bayesian Model Averaging

2012 ◽  
Author(s):  
Rodney W. Strachan ◽  
H. K. van Dijk
Keyword(s):  
Business Cycle ◽  
Bayesian Model ◽  
Bayesian Model Averaging ◽  
Model Averaging ◽  
Technology Shocks ◽  
Cycle Model ◽  
Business Cycle Model ◽  
Model Subject ◽  
Specific Technology

A Skeptical Note on the Importance of Technology Shocks

1998 ◽  
Vol 42 (1) ◽  
pp. 108-111
Author(s):  
James E. Hartley
Keyword(s):  
Business Cycle ◽  
Real Business Cycle ◽  
Technology Shocks ◽  
Cycle Model ◽  
Depreciation Rate ◽  
Business Cycle Model ◽  
Real Business Cycle Model

This paper tests whether a real business cycle model can be built using a specific technological shock, a change in the depreciation rate, instead of an aggregate multiplicative shock. The model cannot duplicate standard business cycle facts.

International Transmission of Shocks in a Business-Cycle Model Under Imperfect Competition

1999 ◽  
Vol 3 (3) ◽  
pp. 341-367 ◽  
Author(s):  
Angel J. Ubide
Keyword(s):  
Business Cycle ◽  
International Business ◽  
Imperfect Competition ◽  
Monopolistic Competition ◽  
Technology Shocks ◽  
Cycle Model ◽  
International Transmission ◽  
Model Driven ◽  
International Business Cycle ◽  
Business Cycle Model

This paper investigates the effects of introducing imperfect competition in an international business-cycle model. We provide some international evidence on markups and analyze the implications of increasing returns to scale and monopolistic competition for the effects and the international transmission of technology and government spending shocks. We also consider exogenous markup fluctuations as a source of shocks and of transmission of business cycles. We show that imperfect competition improves the behavior of a standard model driven by technology shocks, although the behavior of foreign trade variables remains unexplained. We also show that an imperfectly competitive model driven by government shocks can explain the international business cycle at least as well as a model driven by technology shocks.

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