Is Schumpeterian 'creative destruction' a plausible source of endogenous real business cycle shocks?

摘要

This paper examines the link between growth and business cycles by incorporating Schumpeterian growth into an otherwise standard real business cycle (RBC) model. We ask whether Schumpeter's creative destruction process can generate realistic business cycles. We solve the model, generate artificial time series, and compare statistical properties of these series with their historical counterparts. In our approach, the trend component is included in our artificial series just as it is in the data. Hence, we are not tied to any particular filtering method for our comparisons. We find that Schumpeterian fluctuations alone can generate time series that match key moments from U.S. data. We also find, however, that a model with both Schumpeterian and standard RBC shocks performs better.