Business Cycle Analysis Without Much Theory: A Look at Structural V.A.R.S
Posted: 19 May 1998
Date Written: Undated
Two different approaches have emerged as the primary vehicles for analyzing business cycles. Structural vector autoregressions emphasize a heavy reliance on data and a weak reliance on economic theory. Dynamic General Equilibrium models put more reliance on the theory. In this paper we contrast these approaches in an attempt to see if S.V.A.R.s give robust and reliable conclusions about the nature of business cycles.
JEL Classification: E32
Suggested Citation: Suggested Citation