Review of Contemporary Business Research

An Analysis of the Empirical Modelling Approaches to the Real Business Cycle (RBC) Model and Aggregate Technology
Anyalezu, Nkem Kirk Guthlac PhD

Abstract
This paper provides analysis of the various econometric modelling methods utilized in Real Business Cycle (RBC) Model to measure aggregate technology shocks. It sheds insight into the concept of employing the Solow residual (purified technology) to determine the shifts in the production function, and/or in essence estimate the shocks to the economy. In addition, it provides a comparative analysis of the different methodologies and findings. The findings in this study can serve as a useful tool for macroeconomic policy formulation and implementation, especially in relation to the whole economy performance, expansion, recession, employment and investments.

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