A Stochastic Monopsony Theory of the Business Cycle.

Two distinct regimes, contractions and expansions, are generated in a model in which goods markets clear and all individuals are optimizing, strict wage and price takers, have fully rational expectations, and are heterogeneous in both preferences and resource endowments. Involuntary unemployment, as...

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Bibliographic Details

Published in:	Economic Inquiry Vol. 43; no. 1; pp. 206 - 220
Main Authors:	Holmes, James M., Hutton, Patricia A.
Format:	Article
Published:	Wiley-Blackwell January 2005
Subjects:	Stochastic processes Monopsonies Mathematical models of economic competition Mathematical models of business cycles
Online Access:	View this record in EBSCOhost