This volume fills a gap by presenting a collection of the essential articles that define and develop the real business cycle school, as well as those that criticize it. Key areas include: the establishment of the real business cycle program; the aims and methods of the real business cycle school; analysis of the statistics and econometrics of the calibration techniques advocated by real business cycle modelers; assessment of the empirical success of the real business cycle model from a variety of methods and perspectives; assessment of technical change and a critique of Solow's measure in business cycle models. Real Business Cycle Theory includes a detailed introduction and a non-technical User's Guuide to the formulation and solution of models.

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