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© 1998

Business Cycle Models with Indeterminacy

Book

Part of the Contributions to Economics book series (CE)

Table of contents

  1. Front Matter
    Pages I-X
  2. Mark Weder
    Pages 1-44
  3. Mark Weder
    Pages 163-165
  4. Mark Weder
    Pages 167-179

About this book

Introduction

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.

Keywords

Konjunkturzyklen Makroökonomik allgemeine Gleichgewichtstheorie business cycle business cycles economics equilibrium general equilibrium general equilibrium theory macroeconomics modeling welfare Ökonomik

Authors and affiliations

  1. 1.Department of EconomicsHumboldt-University BerlinBerlinGermany

Bibliographic information

  • Book Title Business Cycle Models with Indeterminacy
  • Authors Mark Weder
  • Series Title Contributions to Economics
  • DOI https://doi.org/10.1007/978-3-642-47018-9
  • Copyright Information Physica-Verlag Heidelberg 1998
  • Publisher Name Physica-Verlag HD
  • eBook Packages Springer Book Archive
  • Softcover ISBN 978-3-7908-1078-3
  • eBook ISBN 978-3-642-47018-9
  • Series ISSN 1431-1933
  • Edition Number 1
  • Number of Pages X, 179
  • Number of Illustrations 0 b/w illustrations, 0 illustrations in colour
  • Topics Economic Theory/Quantitative Economics/Mathematical Methods
  • Buy this book on publisher's site
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