The Coordination Problem and Equilibrium Theories of Recessions
AbstractIn this paper, the authors build on the recent literature on coordination problems to construct a model in which there is potential for low-output equilibrium. The authors show that the conditions that guarantee interior Walrasian equilibria, in conjunction with a continuity restriction on strategies, rule out equilibria with extremely low levels of activity (zero activity), which is a distinguishing feature of many existing models. They study the case of separability and show that there is no rationing and, hence, no equilibrium unemployment. In addition, in a numerical example, the authors find that there is a unique symmetric equilibrium. Copyright 1992 by American Economic Association.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 82 (1992)
Issue (Month): 3 (June)
Other versions of this item:
- Larry E. Jones & R. E. Manuelli, 1987. "The Coordination Problem and Equilibrium Theories of Recessions," Discussion Papers 753, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fagnart, Jean-Francois & Pierrard, O. & Sneessens, Henri R., 2007.
"Microeconomic uncertainty and macroeconomic indeterminacy,"
European Economic Review,
Elsevier, vol. 51(6), pages 1564-1588, August.
- Fagnart, Jean-François & Sneessens, Henri, 2001. "Microeconomic Uncertainty and Macroeconomic Indeterminacy," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2001007, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Levin, Dan & Peck, James, 2008.
"Investment dynamics with common and private values,"
Journal of Economic Theory,
Elsevier, vol. 143(1), pages 114-139, November.
- Dan Levin & James Peck, 2005. "Investment Dynamics with Common and Private Values," Levine's Bibliography 666156000000000607, UCLA Department of Economics.
- Olivier SCAILLET, 2001.
"Density Estimation Using Inverse and Reciprocal Inverse Guassian Kernels,"
Discussion Papers (IRES - Institut de Recherches Economiques et Sociales)
2001017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- O. Scaillet, 2001. "Density Estimation Using Inverse and Reciprocal Inverse Gaussian Kernels," THEMA Working Papers 2001-24, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- repec:ebl:ecbull:v:4:y:2008:i:29:p:1-8 is not listed on IDEAS
- V.V. Chari & Larry E. Jones & Rodolfo E. Manuelli, 1989.
"Labor contracts in a model of imperfect competition,"
117, Federal Reserve Bank of Minneapolis.
- Chari, V V & Jones, Larry E & Manuelli, Rodolfo E, 1989. "Labor Contracts in a Model of Imperfect Competition," American Economic Review, American Economic Association, vol. 79(2), pages 358-63, May.
- L Kaas & P Madden, 2002.
"Equilibrium Involuntary Unemployment Under Oligempory,"
Centre for Growth and Business Cycle Research Discussion Paper Series
21, Economics, The Univeristy of Manchester.
- Kaas, Leo & Madden, Paul, 1999. "Equilibrium Involuntary Unemployment under Oligempory," Economics Series 68, Institute for Advanced Studies.
- L Kaas & P Madden, 2002. "Equilibrium Involuntary Unemployment under Oligempory," The School of Economics Discussion Paper Series 0213, Economics, The University of Manchester.
- Huck, Steffen, 1996. "Rationing and rationality," European Journal of Political Economy, Elsevier, vol. 12(4), pages 641-669, December.
- Herings, P.J.J. & Dreze, J., 1998.
"Continua of Underemployment Equilibria,"
1998-05, Tilburg University, Center for Economic Research.
- Andrew John & Russell Cooper, 2000. "Imperfect competition and macroeconomics : Theory and quantitative implications," Cahiers d'Économie Politique, Programme National Persée, vol. 37(1), pages 289-328.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
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.