Nuno Barrau, Galo (2008): Schumpeterian Foundations of Real Business Cycles.
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In this paper I propose a dynamic stochastic general quilibrium model that includes many of Schumpeter’s ideas about growth and business cycles. In this model, technology advances are due to the introduction of vertical innovations by entrepreneurs who are funded by banks. The model is solved and estimated by bayesian methods for the U.S. economy to compute the value of some of its structural parameters. Results show that the presented innovation mechanism is roughly equivalent in terms of volatilies, correlations and impulse responses to the technology shocks in real business cycle models. Notwithstanding, the model differs from traditional RBC models as it incorporates technology catch-up features that affect the convergence to the steady-state.
|Item Type:||MPRA Paper|
|Original Title:||Schumpeterian Foundations of Real Business Cycles|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E27 - Forecasting and Simulation: Models and Applications
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C50 - General
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Galo Nuno Barrau|
|Date Deposited:||03. Jul 2008 13:46|
|Last Modified:||12. Feb 2013 15:07|
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