Are structural VARs with long-run restrictions useful in developing business cycle theory?

Varadarajan V Chari; Patrick J Kehoe; Ellen R McGrattan

doi:10.1016/j.jmoneco.2008.09.010

Are structural VARs with long-run restrictions useful in developing business cycle theory?

Varadarajan V Chari, Patrick J Kehoe, Ellen R McGrattan

Economics (Twin Cities)

Research output: Contribution to journal › Article › peer-review

118 Scopus citations

Abstract

No, unless technology shocks account for virtually all of the fluctuations in output.

Original language	English (US)
Pages (from-to)	1337-1352
Number of pages	16
Journal	Journal of Monetary Economics
Volume	55
Issue number	8
DOIs	https://doi.org/10.1016/j.jmoneco.2008.09.010
State	Published - Nov 2008

Bibliographical note

Funding Information:
The authors thank the editor, Robert King, and the referees for very helpful comments, Kathy Rolfe and Joan Gieseke for excellent editorial assistance, and the National Science Foundation for financial support. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System.

Keywords

Impulse response
Real business cycle
Technology shocks
Vector autoregressions

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10.1016/j.jmoneco.2008.09.010

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Cite this

@article{1683d9ab045c4ee5b0f6ffbf519d0fe6,

title = "Are structural VARs with long-run restrictions useful in developing business cycle theory?",

abstract = "No, unless technology shocks account for virtually all of the fluctuations in output.",

keywords = "Impulse response, Real business cycle, Technology shocks, Vector autoregressions",

author = "Chari, {Varadarajan V} and Kehoe, {Patrick J} and McGrattan, {Ellen R}",

note = "Funding Information: The authors thank the editor, Robert King, and the referees for very helpful comments, Kathy Rolfe and Joan Gieseke for excellent editorial assistance, and the National Science Foundation for financial support. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. ",

year = "2008",

month = nov,

doi = "10.1016/j.jmoneco.2008.09.010",

language = "English (US)",

volume = "55",

pages = "1337--1352",

journal = "Journal of Monetary Economics",

issn = "0304-3932",