De Grauwe, Paul - In: Journal of Economic Behavior & Organization 83 (2012) 3, pp. 484-501
Booms and busts in economic activity are a regular occurrence. They lead to a strong empirical regularity, i.e. that output gaps and output growth are non-normally distributed. Mainstream macroeconomic models explain this phenomenon by invoking exogenous shocks that are non-normally distributed....