Can Uncorrelated Shocks Generate Aggregate Autocorrelation?: Business Cycle Persistence in a Model with Endogenous Growth and Fluctuations

Authors

Chase Coleman, Brigham Young University
Dr. Kerk Phillips, Brigham Young University

Keywords

macroeconomics, Dynamic Stochastic General Equilibrium, DSGE

College

Family, Home, and Social Sciences

Department

Economics

Abstract

My project pertained to a field of macroeconomics known as Dynamic Stochastic General Equilibrium (DSGE) modeling. DSGE modeling is where an economist builds a model based in economic theory and associates a series of mathematic equations that describe this theory with the model. The key element that makes it more than just algebra is the dynamic feature incorporated with the stochastic element. In order to solve the majority of DSGE models a computer is necessary. Following the simulations, one typically compares the statistical moments that your model returns with those of the economy which you are attempting to simulate.

Recommended Citation

Coleman, Chase and Phillips, Dr. Kerk (2014) "Can Uncorrelated Shocks Generate Aggregate Autocorrelation?: Business Cycle Persistence in a Model with Endogenous Growth and Fluctuations," Journal of Undergraduate Research: Vol. 2014: Iss. 1, Article 172.
Available at: https://scholarsarchive.byu.edu/jur/vol2014/iss1/172