Regime transitions, spillovers and buffer stocks. Analysing the Swiss economy by means of a disequilibrium model (Q1202124)

An interesting macroeconomic disequilibrium model of interdependent markets for goods and labour, allowing for spillovers between markets, is presented. Four regimes of disequilibrium are possible in such an economy: classical unemployment, Keynesian unemployment, repressed inflation and underconsumption. The author shows how unobserved aggregate demands and supplies may be converted into observable output and employment aggregate transactions. The econometrical part of the book contains methods of specification of econometric equations, estimation methods, testing parameters' stability and results of the simulation for the Swiss economy. Estimation of the parameters is based on quaterly data from 1967 to 1985.