In a dynamic non-tâtonnement macroeconomic model, trades take place in each period even when prices are not Walrasian. Prices are adjusted between trading periods according to the intensity of disequilibrium, a reliable measure of which is obtained by means of stochastic rationing. The degree of downward nominal wage stickiness as well as government policy parameters are decisive for the dynamics that emerge. In particular, it is possible for the economy to converge to quasi-stationary states involving permanent unemployment and decreasing nominal wages or to produce complex business cycles with structural features recurrent over time but varying and unpredictable shape and size.

Bignami, F., Colombo, L. V. A., Weinrich, G. H., Complex business cycles and recurrent unemployment in a non-walrasian macroeconomic model, <<JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION>>, 2004; (53/2): 173-191. [doi:10.1016/S0167-2681(03)00068-4] [http://hdl.handle.net/10807/38000]

Complex business cycles and recurrent unemployment in a non-walrasian macroeconomic model

Bignami, Fernando;Colombo, Luca Vittorio Angelo;Weinrich, Gerd Hellmut
2004

Abstract

In a dynamic non-tâtonnement macroeconomic model, trades take place in each period even when prices are not Walrasian. Prices are adjusted between trading periods according to the intensity of disequilibrium, a reliable measure of which is obtained by means of stochastic rationing. The degree of downward nominal wage stickiness as well as government policy parameters are decisive for the dynamics that emerge. In particular, it is possible for the economy to converge to quasi-stationary states involving permanent unemployment and decreasing nominal wages or to produce complex business cycles with structural features recurrent over time but varying and unpredictable shape and size.
2004
Inglese
Bignami, F., Colombo, L. V. A., Weinrich, G. H., Complex business cycles and recurrent unemployment in a non-walrasian macroeconomic model, <<JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION>>, 2004; (53/2): 173-191. [doi:10.1016/S0167-2681(03)00068-4] [http://hdl.handle.net/10807/38000]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/38000
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