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Title: |
Asymmetric Fluctuations and the Third Moments in the Real Business Cycle
Theory |
| Author: |
Choi, Chang-Kon |
| Author
Affiliation: |
Chonbuk
National U |
| Source: |
International Economic Journal, Summer 1998, v. 12, no. 2, pp. 35-53 |
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Publication Date: |
Summer 1998 |
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Abstract: |
This paper examines the third moments in
actual and simulated business cycles. The main goal is to answer the
question whether a business cycle model can generate the asymmetry
observed in the quarterly post war data. The results indicate that for
third moments, the RBC model does not fit the data as well as it does
for second moments. It is also shown that transitory shock can be better
than persistent shock in matching the third moment, which implies an
implication for modelling strategy of real business cycles theory. |
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