Do real business cycle models really exhibit business cycle behavior?

Previous research indicates that real business cycle models are capable of reproducing important features of U.S. business cycle behavior. Here I employ classical methods of business cycle analysis to determine how well the cyclical properties of simulated data from a representative real business cycle model match up with postwar U.S. business cycle characteristics. While the simulated model reproduces qualitative features consistent with observed business cycle experience, quantitative goodness-of-fit tests show that for many sectors of the economy the cyclical characteristics of the simulated data deviate significantly from U.S. business cycle experience. © 1994.