Theory and Measurement of Economic Cycles: a Recent Debate

  • Marco Lippi
Part of the Central Issues in Contemporary Economic Theory and Policy book series (CICETP)


I shall begin by pointing out two limits of this review. Firstly, I shall not deal with non-linear theories of business cycles, i.e. with the attempts to show that simple non-linear equations can generate complicated fluctuations without any resort to exogenous shocks. I shall only focus on the debate that has taken place in the last decade within the so-called Slutzky-Frisch approach, in which fluctuations persist only because the economic system is continually hit by exogenous shocks. In spite of this limitation of the scope a complete review would have produced too long and perhaps not too effective a paper. My topic could therefore be made more precise as: demand and supply theories of the business cycles and the empirical analysis of aggregate variables. In particular, I shall deal with the debate which arose with the works published at the beginning of the eighties, in which the traditional decomposition of macroeconomic time series into a permanent and a transitory component was systematically questioned.


Random Walk Business Cycle Cyclical Component Economic Cycle Permanent Component 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© SIPI Servizio Italiano Pubblicazioni Internazionali Srl 1994

Authors and Affiliations

  • Marco Lippi
    • 1
  1. 1.Università “La Sapienza”RomaItaly

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