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ECN 506 Study Guide - Fall 2018, Comprehensive Midterm Notes - Macroeconomics, Shimer College, Ryerson University


Department
Economics
Course Code
ECN 506
Professor
n/a
Study Guide
Midterm

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ECN 506
MIDTERM EXAM
STUDY GUIDE
Fall 2018

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Introduction Model Results Conclusion
EF9922: Macroeconomics Andolfatto (1996)
Ryerson University
February 27, 2018
Introduction
Introduction
Model Results Conclusion
incorporating labour-market search in a real business cycle model
some quantitative improvements:!- hours fluctuate substantially
more than wages!- contemporaneous correlation between hours and
productivity
falls!- output displays positive autocorrelation
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labour-market search frictions introduces an additional propagation
mechanism to a real business cycle model
Introduction
Introduction
Model Results Conclusion
propagation mechanism
consider changes to the expected returns to search !- changes in
labour productivity - some other structural shock !
equilibrium search and recruiting activities respond !
effects are propagated through time via changes in the stock !of
employment !
recall that the absence of a significant internal propagation
mechanism is one of the big criticisms of RBC models (see
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