Rational Expectations Business Cycles in Search Equilibrium

DSpace/Manakin Repository

Rational Expectations Business Cycles in Search Equilibrium

Citable link to this page


Title: Rational Expectations Business Cycles in Search Equilibrium
Author: Diamond, Peter; Fudenberg, Drew

Note: Order does not necessarily reflect citation order of authors.

Citation: Diamond, Peter, and Drew Fudenberg. 1989. Rational expectations business cycles in search equilibrium. Journal of Political Economy 97, no. 3: 606-619.
Full Text & Related Files:
Abstract: We examine the rational expectations equilibrium paths of the model of search and barter in Diamond's "Aggregate Demand Management in Search Equilibrium." For some initial positions, there are two equilibrium paths converging to different steady states, with the high-activity path Pareto-dominating the low-activity path, With some parameters there is also a continuum of equilibrium paths converging to another steady state. Moreover, there can be cycles that are equilibrium' paths, even though the environment is stationary.
Published Version: http://dx.doi.org/10.1086/261618
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:3374509
Downloads of this work:

Show full Dublin Core record

This item appears in the following Collection(s)


Search DASH

Advanced Search