Continuum of equilibria and business cycles: a dynamic model of mesoeconomics.

A model of a monopolistically competitive representative firm was developed that maximizes its profits, subject to a demand function derived from a dynamic IS-LM aggregate demand function and cost conditions that reflect the outcome in an imperfect labor market. The conditions for the existence of...

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Publicado en:American Economic Review Vol. 82; pp. 372 - 379
Autor principal: Shi, He-ling
Formato: Artículo
Publicado: American Economic Association May 1992
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: May 1992
      vid: 82
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      pub: American Economic Association
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        atl: Continuum of equilibria and business cycles: a dynamic model of mesoeconomics.
      aug:
        au: Shi, He-ling
      su:
        Mathematical models of business cycles
        Economic equilibrium
      sug:
        subj:
          Mathematical models of business cycles
          Economic equilibrium
      ab: A model of a monopolistically competitive representative firm was developed that maximizes its profits, subject to a demand function derived from a dynamic IS-LM aggregate demand function and cost conditions that reflect the outcome in an imperfect labor market. The conditions for the existence of a continuum of equilibria are derived and are contained in the demand and cost function. Given a number of different shocks—a transitory demand-side shock with linear cost condition, a transitory demand-side shock with a Phillips cost condition, a permanent demand-side shock with a linear marginal-cost function, and a permanent demand-side shock with a Phillips marginal-cost condition—the economy could exhibit different patterns of business cycles. These patterns and their respective scenarios are discussed.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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