Creator

• Aiyagari, S. Rao

Series

• Staff report (Federal Reserve Bank of Minneapolis. Research Department)

Issue number

• 196

Date created

• 1995-08

Abstract

• I argue that Farmer and Guo's one-sector real business cycle model with indeterminacy and sunspots fails empirically and that its failure is inherent in the logic of the model taken together with some simple labor market facts.

Subject (JEL)

• E32 - Business Fluctuations; Cycles
• C32 - Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

Keyword

• Sunspots
• Business cycles
• Labor Market
• Indeterminacy

Related information

• Related paper: Working Paper 543: Comments on Farmer and Guo's "The Econometrics of Indeterminacy: An Applied Study"

Date modified

• 04/15/2020

Corporate Author

• Federal Reserve Bank of Minneapolis. Research Department

Publisher

• Federal Reserve Bank of Minneapolis

Resource type

• Research Paper

DOI

•  https://doi.org/10.21034/sr.196

License

• Creative Commons BY-NC Attribution-NonCommercial 4.0 International

In Collection:

• Staff Reports

Zipped Files

Download a zip file that contains all the files in this work.

Thumbnail	Title	Date Uploaded	Visibility	Actions
	sr196.pdf	2019-09-13	Public	Download