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Finn Kydland and Edward Prescott: Driving Forces behind Economic Cycles (2004 Nobel Prize in Economics)
https://doi.org/10.32609/0042-8736-2005-1-133-143
Abstract
The method of analyzing and modeling cyclical fluctuations of economy initiated by F. Kydland and E. Prescott - the 2004 Nobel Prize winners in Economics - is considered in the article. They proposed a new business cycle theory integrating the theory of long-run economic growth as well as the microeconomic theory of consumers and firms behavior. Simple version of general dynamic and stochastic macroeconomic model is described. The given approach which was formulated in their fundamental work "Time to Build and Aggregate Fluctuations" (1982) gave rise to an extensive research program and is still used as a basic instrument for investigating cyclical processes in economy nowadays.
References
1. Cooley T., Prescott E. Economic Growth and Business Cycles. In: Cooley T. (ed.). Frontiers of Business Cycle Research. Princeton University Press, Princeton, 1995, p. 1-38.
2. Kydland F., Prescott E. Time to Build and Aggregate Fluctuations // Econometrica, 1982, vol. 50, No 6, p. 1345-1370.
Review
For citations:
Balashova E. Finn Kydland and Edward Prescott: Driving Forces behind Economic Cycles (2004 Nobel Prize in Economics). Voprosy Ekonomiki. 2005;(1):133-143. (In Russ.) https://doi.org/10.32609/0042-8736-2005-1-133-143
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