Three original models which explain business cycles as a result of self-fulfilling expectations are presented. The models are founded on the structue of dynamic general equilibrium theory. Market power and increasing returns to scale are introduced which allow indeterminancy of the Rational Expectat...

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Bibliographische Detailangaben

1. Verfasser:	Weder, Mark (VerfasserIn)
Format:	Elektronisch E-Book
Sprache:	English
Veröffentlicht:	Heidelberg Physica-Verlag HD 1998
Ausgabe:	1st ed. 1998
Schriftenreihe:	Contributions to Economics
Schlagworte:	Economic Theory/Quantitative Economics/Mathematical Methods Economic theory Konjunkturzyklus Gleichgewichtsmodell Self-fulfilling Prophecy Konjunkturtheorie Hochschulschrift
Online-Zugang:	BTU01 Volltext
Zusammenfassung:	Three original models which explain business cycles as a result of self-fulfilling expectations are presented. The models are founded on the structue of dynamic general equilibrium theory. Market power and increasing returns to scale are introduced which allow indeterminancy of the Rational Expectations equilibria to be obtained. Unlike the majority of existing literature on this subject, the departures from perfect markets and constant returns presented in these models are very low and, more importantly, at a realistic level to achieve the respective results. The model is structured in the tradition of the Real Business Cycle approach to fluctuations. The time series of the stochastic version of the model act as a factor to measure success. However, shocks generally derive from demand disturbances (animal spirits) alone to produce these results. It is demonstrated in all of the presented models that stylized facts of the business cycle can be reproduced
Beschreibung:	1 Online-Ressource (X, 179 p)
ISBN:	9783642470189
DOI:	10.1007/978-3-642-47018-9