Flexible Prices and the Business Cycle
研究了灵活价格模型如何应对产出动态和就业对技术冲击反应的两个实证挑战，发现标准RBC模型通过引入永久性和暂时性供给冲击的信号提取问题可以解决这些挑战。
Business cycles models with flexible prices face two major empirical challenges. One regards observed output dynamics: the positive, short run, autocorrelation in GNP growth, and the hump‐shaped, trend‐reverting output response to transitory shocks ( Cogley and Nason 1995 ). The other regards the alleged persistent decline in employment following a positive technology shock ( Galí 1999 ). No determinate model with flexible prices has so far been able to address all of the Cogley Nason–Galí challenges. We show that the standard RBC model can do so if it contains a signal extraction problem involving permanent and temporary supply shocks.