Busato, Francesco - School of Economics and Management, University of Aarhus - 2004
comovement by using inter-sectoral and idiosyncratic shocks. This mechanism is complementary to the standard Real Business Cycle … standard Real Business Cycle model fails to explain. Third, the model generates a false Solow Residual, even though there is no … using inter-sectoral and idiosyn-
cratic shocks. This mechanism is complementary to the standard Real Business Cycle theory …