The ABCs of RBCs: An Introduction to Dynamic Macroeconomic Models

by George McCandless

The ABCs of RBCs is the first book to provide a basic introduction to Real Business Cycle (RBC) and New-Keynesian models. These models argue that random shocks―new inventions, droughts, and wars, in the case of pure RBC models, and monetary and fiscal policy and international investor risk aversion, in more open interpretations―can trigger booms and recessions and can account for much of observed output volatility.

George McCandless works through a sequence of these Real Business Cycle and New-Keynesian dynamic stochastic general equilibrium models in fine detail, showing how to solve them, and how to add important extensions to the basic model, such as money, price and wage rigidities, financial markets, and an open economy. The impulse response functions of each new model show how the added feature changes the dynamics.

The ABCs of RBCs is designed to teach the economic practitioner or student how to build simple RBC models. Matlab code for solving many of the models is provided, and careful readers should be able to construct, solve, and use their own models.

In the tradition of the “freshwater” economic schools of Chicago and Minnesota, McCandless enhances the methods and sophistication of current macroeconomic modeling.

Genres: Economics

448 pages, Hardcover

First published March 31, 2008

Reviews

[Jacko Chi · Rating 4 out of 5]

A macro textbook for new generation. A book focus more on modelling and techniques than economic intuition. So this one is not a good macro book for beginners compare with Romer's and others. For example, McCandless doesnt mention anything about investment and consumption which are the two most important part of GDP. While, of course, as the name tells, this book is trying to deal with RBCs.

However, this book will be a good complement to Romer and other traditional graduate level Macro textbooks. As it helps you to practice Matlab programming rather than math exercise for graphics are an easier way to understand complex and complicated equations and concepts, at least for me :).

[时间的玫瑰 · Rating 4 out of 5]

作者萌萌的。最初的封面是是自己七岁的女儿画的，出版社的人嫌孩子气就换了。“ I like the one they did as well, but this one wins my heart. ”

[Grant · Rating 1 out of 5]

textbook :(