Econometrica Vol. 53 No. 5 1985
On Endogenous Competitive Business Cycles
Abstract
This paper develops an example in which persistent deterministic business cycles appear in a purely endogenous fashion under fal.,).,~e~ oaÂ.Jte.These cycles are not attributable to exogenous 11 shocks 11 nor toThis procedure defines a function W that takes the interior of JR! into ~ itself, and it is clear that the equation qt = W(qt_ 1 ) describes the same dynamics as (2.4) through the relation qt-l = (pt-1' ... ,pt-T) for all t .1 We may in particular state for later reference LEMMA 2.2.AMu.me.(1.a),(1.c.) and (2,6).Let (pt) be. a pwocüc.1.ie.que.nc.e.06 pOJ.ii- tive.ptiic.uwilh pwod k and fe.t (pi,,.,p;)be.i:t6 onbil.Let UJ.i de.0 ine.
- DOI
- 10.2307/1911010
- Volume
- 53
- Issue
- 5
- Pages
- 995
- Sources
- bibtex:phds-export.bib crossref openalex