| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP3985
|
| DP3985 The Empirics of Agglomeration and Trade |
| Thierry Mayer; Keith Head
|
| 发表日期 | 2003-07-23
|
| 出版年 | 2003
|
| 语种 | 英语
|
| 摘要 | The Paper approaches business cycles in terms of extrinsic uncertainty related, not to dynamic indeterminacy of intertemporal equilibria (in the neighborhood of an attractor) or to multiplicity of steady states (in non-linear models), but to static indeterminacy of free entry oligopolistic equilibria within each period. We consider an OLG economy in which firms, supplying differentiated goods within each one of many sectors, and producing under increasing returns-to-scale, compete in prices in perfectly contestable markets. The number of active firms is shown to vary across sectoral equilibria, depending upon the (correct) producers? conjectures on the actions of their competitors. These conjectures are assumed to be coordinated by some extrinsic Markov chain, thus generating endogenous shocks in both the markup factor and productivity, and resulting in perturbations of the dynamic system (as in the case of exogenous random shocks). Consumers? expectations may magnify the extrinsic uncertainty characterizing producers? conjectures. Since the source of fluctuations does not rely on dynamic indeterminacy, we can weaken the condition on the degree of increasing returns, which may be arbitrarily small (with a moderate positive elasticity of labour supply), provided goods substitutability within each sector becomes arbitrarily large. |
| 主题 | International Macroeconomics
; Industrial Organization
|
| 关键词 | Business cycles
Animal spirits
Sunspots
Oligopoly
Free entry
Indeterminacy
|
| URL | https://cepr.org/publications/dp3985
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/532962
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推荐引用方式
GB/T 7714 |
Thierry Mayer,Keith Head. DP3985 The Empirics of Agglomeration and Trade. 2003.
|
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