Time to build and aggregate fluctuations: some new evidence
Abstract: This paper presents maximum likelihood estimates of a real business cycle model very similar to one Kydland and Prescott  suggested. The results of the paper conflict with Kydland and Prescott?s. The model leaves unexplained much of the variance of two key investment series, namely, structures and equipment. Also, much of the variation in the differences of per capita hours can be generated assuming that past leisure choices do not affect current utility.
File(s): File format is application/pdf http://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=550
Provider: Federal Reserve Bank of Minneapolis
Part of Series: Working Papers
Publication Date: 1986