Imperfectly competitive cycles with Keynesian and Walrasian features

Arbeitspapier

We consider a multi-sector overlapping generations model with imperfectly competitive firms in the output markets and wage setting trade unions in the labour markets. A coordination problem between firms creates multiple temporary equilibria which are either Walrasian or of the Keynesian unemployment type. There exist many deterministic and stochastic equilibrium cycles fluctuating between Keynesian recession and Walrasian boom periods with arbitrarily long phases in each regime. The cycles are in accordance with certain empirical regularities. Money is neutral and superneutral, but appropriate countercyclical fiscal policies stabilize the cycles in a textbook Keynesian way.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Reihe Ökonomie / Economics Series ; No. 83

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Business Fluctuations; Cycles ; Fiscal Policy
• Subject: endogenous business cycles ; imperfect competition ; stabilization policy ; Konjunkturtheorie ; Unvollkommener Wettbewerb ; Finanzpolitik ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kaas, Leo ; Madden, Paul
• Event: Veröffentlichung
• (who): Institute for Advanced Studies (IHS)
• (where): Vienna
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/70814