Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/59568
Type: | Journal article |
Title: | Business cycle dynamics |
Author: | Wende, Sebastian Walter Thomas |
Citation: | Economic Analysis and Policy, 2009; 39(2):205-234 |
Publisher: | Economic Sciety of Australia |
Issue Date: | 2009 |
ISSN: | 0313-5926 |
School/Discipline: | School of Economics |
Statement of Responsibility: | Sebastian Wende |
Abstract: | This paper attempts to simulate endogenous cyclical behaviour through variations on the standard real business models. This paper relaxes the perfect foresight assumption implied by the rational agent hypothesis. It is replaced by imperfect adaptive expectations. The model is extended with a delay between investment and capital accumulation. This paper also simulates a non-equilibrium timedifferential wage adjustment in a model economy. The models show that the boom produced by a single positive technology shock can be followed by the equivalent of a recession. The models are solved using numerical methods for differential equations, which allow for non-linear dynamics, as opposed to the usual log linearisation. |
Rights: | Copyright © 2007-2012 Economic Analysis and Policy (EAP) |
Published version: | http://www.eap-journal.com/vol_39_iss_2.php |
Appears in Collections: | Economics publications |
Files in This Item:
File | Size | Format | |
---|---|---|---|
hdl_59568.pdf | 3.6 MB | Adobe PDF | View/Open |
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.