Increasing returns and unsynchronized wage adjustment in sunspot models of the business cycle

DOI10.1016/j.jet.2011.10.013zbMath1258.91160MaRDI QIDQ665465

Qinglai Meng, Kevin X. D. Huang

Publication date: 5 March 2012

Published in: Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL: http://hdl.handle.net/1803/15896

zbMATH Keywords

indeterminacy; increasing returns; relative wage; risk aversion in labor; sunspot

Mathematics Subject Classification ID

91B64: Macroeconomic theory (monetary models, models of taxation)

Related Items

Sectoral composition of government spending, distortionary income taxation, and macroeconomic (in)stability, Money growth targeting and indeterminacy in small open economies, Comparing recursive equilibrium in economies with dynamic complementarities and indeterminacy

Uses Software

• Gensys

Cites Work

• Shocks, structures or monetary policies? The euro area and US after 2001
• Solution algorithm to a class of monetary rational equilibrium macromodels with optimal monetary policy design
• Computing sunspot equilibria in linear rational expectations models
• A correction of misstated equations in Hespeler (2008)
• Capacity utilization under increasing returns to scale
• Indeterminacy and increasing returns
• Solving linear rational expectations models
• Sticky wages and sectoral labor comovement
• Firm-specific capital, nominal rigidities, and the Taylor principle