NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Real Business Cycles and the Lucas Paradigm

Richard T. Froyen, Roger N. Waud

NBER Working Paper No. 2109 (Also Reprint No. r1073)
Issued in December 1988
NBER Program(s):   ME   EFG

When the Lucas paradigm is generalized to include real effects, the effects of real factors and monetary factors on the business cycle are always interrelated. Furthermore, in such models monetary factors can affect the long-run behavior or real output, contrary to the commonly held view that they can't. Real business cycle models and Lucas-type models are different paradigms not in the sense of real versus monetary, but in the interrelation- ships between real and monetary factors intrinsic to the Lucas paradigm as contrasted to the dichotomy between real and monetary factors implied by the real business cycle literature.

download in pdf format
   (604 K)

download in djvu format
   (482 K)

email paper

This paper is available as PDF (604 K) or DjVu (482 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Froyen, Richard T. and Roger N. Waud. "Real Business Cycles and the Lucas Paradigm." From Economic Inquiry, Vol. XXVI, No. 2, pp. 183-201, (April 1988).

Users who downloaded this paper also downloaded these:
Plosser w3221 Money and Business Cycles: A Real Business Cycle Interpretation
Mankiw w2882 Real Business Cycles: A New Keynesian Perspective
King and Rebelo w7534 Resuscitating Real Business Cycles
McCallum w2480 Real Business Cycle Models
Mintz Dating American Growth Cycles
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us