Endogenous business cycles and stabilization policies

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International Economic Review, 44 (2003), 3 (08), pp. 895-915
http://hdl.handle.net/10230/912
To cite or link this document: http://hdl.handle.net/10230/912
dc.contributor.author Aloi, Marta
dc.contributor.author Jacobsen, Hans Jorgen
dc.contributor.author Lloyd Braga, Teresa
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 1998-09-01
dc.identifier.citation International Economic Review, 44 (2003), 3 (08), pp. 895-915
dc.identifier.uri http://hdl.handle.net/10230/912
dc.description.abstract The paper reports results on the effects of stylized stabilization policies on endogenously created fluctuations. A simple monetary model with intertemporally optimizing agents is considered. Fluctuations in output may occur due to fluctuations in labor supply which are again caused by volatile expectations which are ``self fulfilling'', i.e. correct given the model. It turns out that stabilization policies that are sufficiently countercyclical in the sense that government spending (on transfers or demand) depends sufficiently strongly negatively on GNP-increases can stabilize the economy at a monetary steady state for an arbitrarily low degree of distortion of that steady state. Such stabilization has unambiguously good welfare effects and can be achieved without features such as positive lump sum taxation or negative income taxation as part of the stabilization policy.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 476
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Endogenous business cycles and stabilization policies
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:01Z
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword endogenous business cycles
dc.subject.keyword stabilization policy
dc.rights.accessRights info:eu-repo/semantics/openAccess


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