THE RIGHT FIT FOR THE WRONG REASONS: REAL BUSINESS CYCLE IN AN OIL-DEPENDENT ECONOMY

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Santos, Miguel; (2016)
  • Publisher: Pontificia Universidad Católica de Chile. Instituto de Economía.
  • Subject: Macroeconomics | RBC | oil shocks | labor markets | Venezuela

Venezuela has an oil-dependent economy subject to large exogenous shocks and a rigid labor market. These features go straight to the heart of two weaknesses of real business cycle (RBC) theory widely reported in the literature: neither shocks are volatile enough nor rea... View more
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