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Hours and effort variation in sunspot-based business cycle theory

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Listed:
  • Mark Weder

    (The University of Adelaide)

Abstract

This paper analyzes the role of variable work effort in inducing sunspot equilibria in real business cycle models. Not only is it demonstrated that variable workers' work intensity reduces the degree of increasing returns that is needed to generate indeterminacy but it is also shown that this can be done without assuming a very elastic supply of labor.

Suggested Citation

  • Mark Weder, 2008. "Hours and effort variation in sunspot-based business cycle theory," Economics Bulletin, AccessEcon, vol. 5(12), pages 1-12.
    • Handle: RePEc:ebl:ecbull:eb-08e30002
    as

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    References listed on IDEAS

    as
    1. Katharine S. Neiss & Evi Pappa, 2005. "Persistence without too much price stickiness: the role of variable factor utilization," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(1), pages 231-255, January.
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    More about this item

    Keywords

    Indeterminacy;

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E0 - Macroeconomics and Monetary Economics - - General

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