THE RIGHT FIT FOR THE WRONG REASONS: REAL BUSINESS CYCLE IN AN OIL-DEPENDENT ECONOMY

dc.creator	Santos,Miguel
dc.date	2016-12-01
dc.date.accessioned	2019-04-25T12:42:06Z
dc.date.available	2019-04-25T12:42:06Z
dc.identifier	https://scielo.conicyt.cl/scielo.php?script=sci_arttext&pid=S0719-04332016000100004
dc.identifier.uri	http://revistaschilenas.uchile.cl/handle/2250/61347
dc.description	Venezuela has an oil-dependent economy subject to large exogenous shocks and a rigid labor market. These features go straight to the heart of two weaknesses of real business cycle (RBC) theory widely reported in the literature: neither shocks are volatile enough nor real salaries sufficiently flexible as required by the RBC framework to replicate the behavior of the economy. We calibrate a basic RBC model and compare a set of relevant statistics from RBC-simulated time series with actual data for Venezuela and the benchmark case of the United States (1950-2008). Despite Venezuela being a heavily regulated economy, RBC-simulated series provide a good fit, in particular with regard to labor markets.
dc.format	text/html
dc.language	en
dc.publisher	Pontificia Universidad Católica de Chile. Instituto de Economía.
dc.relation	10.7764/LAJE.53.1.61
dc.rights	info:eu-repo/semantics/openAccess
dc.source	Latin american journal of economics v.53 n.1 2016
dc.subject	Macroeconomics
dc.subject	RBC
dc.subject	oil shocks
dc.subject	labor markets
dc.subject	Venezuela
dc.title	THE RIGHT FIT FOR THE WRONG REASONS: REAL BUSINESS CYCLE IN AN OIL-DEPENDENT ECONOMY