Épargne de précaution et chômage : une évaluation quantitativede l'auto-assurance
AbstractEndogenous cycles cannot emerge in one-sector monetary overlapping generations models when there is intertemporal substitutability, even if returns to scale are increasing. In this article, we show that the conclusions are different when there are two sectors. Considering a two-sector monetary overlapping generations economy, we assume that in each sector, households consume the two goods produced in the economy and firms produce one final good under an internal constant returns to scale technology. However, returns to scale are increasing at the social level because there are sector specific externalities. In this framework, we show that endogenous cycles can occur when households prefer to consume the good produced in the other sector. This result is essentially due to the fact that aggregate consumption in each sector highly depends on the price of the good produced in the other sector. Moreover, we can notice that it does not depend on the substitutability or complementarity between the two goods.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (2004)
Issue (Month): 74 ()
Other versions of this item:
- Algan, Y. & Hairault, J.-O., 2000. "Epargne de precaution et chomage : une evaluation quantitative de l'auto-assurance," Papiers d'Economie MathÃÂ©matique et Applications 2000.92, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Arnaud Chéron & Jean-Olivier Hairault & François Langot & Yann Algan, 2004. "Épargne de précaution et chômage : une évaluation quantitative de l'auto-assurance," Sciences Po publications info:hdl:2441/8861, Sciences Po.
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- D30 - Microeconomics - - Distribution - - - General
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Gary-Bobo).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.