We analyze the stylized facts of the Swiss business cycle and find only minor differences compared to US time series. This justifies running a simulation experiment using the real business cycle (RBC) model of KYDLAND/PRESCOTT (KP) (1982) which is formulated for a closed economy. The stylized facts obtained in our simulations are as close to effective series as reported in the original paper by KP (1982) for the US business cycle. The lower variability of employment in Switzerland is explained through an appropriate calibration of the model.
Real Business Cycle Models - Some Evidence for SwitzerlandGuido Kuersteiner and Marcel Rindisbacher ,
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Swiss Journal of Economics and Statistics