International Business Cycles with Endogenous Incomplete Markets
نویسندگان
چکیده
منابع مشابه
An incomplete markets model of business cycles
This paper explores the effects of incomplete markets and positive spillovers on aggregate and industry output behavior. We consider an economy composed of a fixed set of infinitely-lived industries. When industries coordinate production decisions they jointly improve their productivity. Markets are missing, however, in the sense that industries cannot automatically form the most productive coa...
متن کاملLinear approximation methods and international real business cycles with incomplete asset markets
Most quantitative studies of international real business cycle (IRBC) models require the use of approximate solution methods. We solve an IRBC model with incomplete asset markets using King, Plosser and Rebelo’s (1988) linear approximation method. We quantify the additional approximation error brought about by the existence of a unit root in the linear dynamic system and demonstrate that the sy...
متن کاملWelfare Cost of Business Cycles When Markets are Incomplete
This paper analyzes the welfare costs of business cycles when workers face uninsurable idiosyncratic labor income risk that has a cyclical component. In accordance with the previous literature, this paper decomposes individual labor income risk into an aggregate and an idiosyncratic component and assumes that these two components are stochastically independent. In contrast to the previous liter...
متن کاملEndogenous trading constraints with incomplete asset markets
The present paper endogeneizes the borrowing constraints on capital holdings in an infinite horizon incomplete markets model with capital accumulation. In particular, it assumes that two types of households can break their trading arrangements by going into financial autarky, in which case they are seized from any positive asset holdings and excluded from future asset trade forever. Since we sh...
متن کاملEndogenous Strategic Business Cycles
This paper examines an overlapping generations version of the Shapley-Shubik market game. We show existence of equilibria for the simple one commodity model and analyze the dynamics of the equilibrium trajectories generated in the model. Because of the non-linearities generated by strategic interaction of agents in the model, we find that complex and chaotic equilibrium dynamics are possible in...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Econometrica
سال: 2002
ISSN: 0012-9682,1468-0262
DOI: 10.1111/1468-0262.00314