Theory-Based Models
Theory-Based Models
Theory-Based Models
A stripped-down real business cycle setup linking productivity, capital accumulation, and intertemporal return conditions.
Theory-Based Models
Adjust the controls, keep the diagram in view, and save or share the resulting scenario.
Scenario
This page starts from the current parameter state for the selected model.
Saved scenarios stay in this browser so you can revisit them or add them to compare.
Raises current productivity above trend.
Raises the discount factor and supports more capital.
Steady-state benchmark
Steady-state capital
5.82
Steady-state output
2.15
Steady-state consumption
1.68
Required return
0.122
Impact summary
The simplified RBC setup implies steady-state capital 5.82 and output 2.15.
The path combines a temporary productivity disturbance with gradual capital adjustment rather than nominal rigidities.