Time to Build and Aggregate Fluctuations
E140442
"Time to Build and Aggregate Fluctuations" is a seminal macroeconomics paper that introduced time-to-build investment and technology shocks as key drivers of business cycles, laying foundational ideas for real business cycle theory.
All labels observed (1)
| Label | Occurrences |
|---|---|
| Time to Build and Aggregate Fluctuations canonical | 1 |
Statements (45)
| Predicate | Object |
|---|---|
| instanceOf |
academic paper
ⓘ
macroeconomics paper ⓘ seminal paper in real business cycle theory ⓘ |
| arguesThat | technology shocks are primary drivers of business cycles ⓘ |
| assumes |
exogenous technology process
ⓘ
perfectly competitive markets ⓘ rational expectations ⓘ representative agent ⓘ |
| author |
Edward C. Prescott
ⓘ
Finn E. Kydland ⓘ |
| citedFor |
early use of calibration in macroeconomics
ⓘ
introduction of time-to-build in macro models ⓘ |
| contribution |
formalizes real business cycle mechanisms
ⓘ
quantitative calibration of a real business cycle model ⓘ shows model can replicate key features of U.S. business cycles ⓘ |
| countryOfContext | United States economy ⓘ |
| field |
business cycle theory
ⓘ
macroeconomics ⓘ real business cycle theory ⓘ |
| focusesOn |
capital accumulation
ⓘ
investment dynamics ⓘ output fluctuations ⓘ |
| hasTopic |
aggregate output volatility
ⓘ
business cycle stylized facts ⓘ capital formation ⓘ labor supply fluctuations ⓘ productivity shocks ⓘ |
| impact |
popularized technology shocks as central macroeconomic disturbances
ⓘ
shifted macroeconomics toward micro-founded models ⓘ |
| influenced |
development of real business cycle literature
ⓘ
modern DSGE modeling ⓘ |
| introduces | time-to-build structure in capital accumulation ⓘ |
| language | English ⓘ |
| mainConcept |
aggregate fluctuations
ⓘ
dynamic stochastic general equilibrium model ⓘ technology shocks ⓘ time-to-build investment ⓘ |
| publicationYear | 1982 ⓘ |
| publishedIn | Econometrica ⓘ |
| relatedTo |
Kydland and Prescott Nobel Prize citation
ⓘ
real business cycle theory ⓘ
surface form:
Real Business Cycles
|
| shows |
technology shocks can account for a large fraction of output variance
ⓘ
time-to-build lags can amplify and propagate shocks ⓘ |
| usesMethod |
calibration
ⓘ
dynamic general equilibrium modeling ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.