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ERIC Number: EJ771287
Record Type: Journal
Publication Date: 2007
Pages: 19
Abstractor: Author
ISBN: N/A
ISSN: ISSN-0022-0485
EISSN: N/A
Teaching Real Business Cycles to Undergraduates
Brevik, Frode; Gartner, Manfred
Journal of Economic Education, v38 n2 p229-247 Spr 2007
The authors review the graphical approach to teaching the real business cycle model introduced in Barro. They then look at where this approach cuts corners and suggest refinements. Finally, they compare graphical and exact models by means of impulse-response functions. The graphical models yield reliable qualitative results. Sizable quantitative differences exist, but these can partly be remedied by adding appropriate refinements when taught by experienced instructors. The graphical analysis of the real business cycle equips students with a first understanding of the economy's supply side and generates dynamics that will survive closer scrutiny later in the curriculum. (Contains 8 figures and 15 notes.)
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Publication Type: Journal Articles; Reports - Evaluative
Education Level: Higher Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Grant or Contract Numbers: N/A