Working Paper: NBER ID: w3160
Authors: Robert G. King; Charles I. Plosser; William E. Simon
Abstract: This paper conducts a modern variant of the test proposed and carried out by Adelman and Adelman (1959). Using the methods developed by Burns and Mitchell (1946). we see if we can distinguish between the economic series generated by an actual economy and those analogous artificial series generated by a stochastically perturbed economic model. In the case of the Adelmans, the model corresponded to the Klein-Goldberger equations. In our case, the model corresponds to a simple real business cycle model. The results indicate a fairly high degree of coincidence in key economic aggregates between the business cycle characteristics identified in actual data and those found in our simulated economy.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| actual economic series (E39) | characteristics of business cycles (E32) |
| simulated economic series (E37) | characteristics of business cycles (E32) |
| simulated model's parameters (C51) | characteristics of business cycles (E32) |