Indeterminacy, aggregate demand, and the real business cycle [An article from: Journal of Monetary Economics]

by J. Benhabib, Y. Wen

List Price:	~~$8.95~~
Amazon Price:	$8.95 & eligible for FREE Super Saver Shipping on orders over $25.
Lowest New Price:	$8.95
Availablitiy:	Available for download now

Editorial Reviews
Product Description
This digital document is a journal article from Journal of Monetary Economics, published by Elsevier in 2004. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
We show that under indeterminacy aggregate demand shocks are able to explain not only aspects of actual fluctuations that standard RBC models predict fairly well, but also aspects of actual fluctuations that standard RBC models cannot explain, such as the hump-shaped, trend reverting impulse responses to transitory shocks found in US output (Cogley and Nason, Am. Econom. Rev. 85 (1995) 492); the large forecastable movements and comovements of output, consumption and hours (Rotemberg and Woodford, Am. Econom. Rev. 86 (1996) 71); and the fact that consumption appears to lead output and investment over the business cycle. Indeterminacy arises in our model due to capacity utilization and mild increasing returns to scale.

Price is accurate as of the date/time indicated. Prices and product availability are subject to change. Any price displayed on the Amazon website at the time of purchase will govern the sale of this product.