Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Lambertini, Luisa / Nimark, Kristoffer / Wang, Pengfei

2 Issues per year


IMPACT FACTOR 2016: 0.043
5-year IMPACT FACTOR: 0.376

CiteScore 2016: 0.36

SCImago Journal Rank (SJR) 2016: 0.312
Source Normalized Impact per Paper (SNIP) 2016: 0.272

Online
ISSN
1935-1690
See all formats and pricing
More options …

Real Business Cycle Theory and the Great Depression: The Abandonment of the Abstentionist Viewpoint

Michel R De Vroey / Luca Pensieroso
Published Online: 2006-11-05 | DOI: https://doi.org/10.2202/1534-6005.1403

Is the Great Depression amenable to real business cycle theory? In the 1970s and 1980s Lucas and Prescott took an abstentionist stance. They maintained that, because of its exceptional character, an explanation of the Great Depression was beyond the grasp of the equilibrium approach to the business cycle. However, while Lucas stuck to this view, Prescott changed his mind at the end of the 1990s, breaking his earlier self-imposed restraint. In this paper we document this evolution of opinion and produce a first assessment of real business cycle models of the Great Depression. We claim that the fact of having constructed an equilibrium model of the Great Depression constitutes a methodological breakthrough. However, as far as substance is concerned, we argue that the contribution of real business cycle literature on the Great Depression is slim, and does not gain the upper hand over the work of economic historians.

Keywords: great depression; new classical macroeconomics; real business cycle theory; equilibrium; unemployment

About the article

Published Online: 2006-11-05


Citation Information: Contributions in Macroeconomics, ISSN (Online) 1534-6005, DOI: https://doi.org/10.2202/1534-6005.1403.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston. Copyright Clearance Center

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
Pedro Garcia Duarte
The European Journal of the History of Economic Thought, 2016, Volume 23, Number 2, Page 332
[2]
Brian Snowdon
Eastern Economic Journal, 2007, Volume 33, Number 4, Page 541

Comments (0)

Please log in or register to comment.
Log in