Rational Expectations Business Cycles in Search Equilibrium

This file is part of IDEAS, which uses RePEc data

Rational Expectations Business Cycles in Search Equilibrium

Author Info

Diamond, Peter
Fudenberg, Drew

Additional information is available for the following registered author(s):

Abstract

The authors examine the rational expectations equilibrium paths of the model of search and barter in Peter A. Diamond's "Aggregate Demand Management in Search Equilibrium" (1982). 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. Copyright 1989 by University of Chicago Press.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. 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.

Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 97 (1989)
Issue (Month): 3 (June)
Pages: 606-19
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:ucp:jpolec:v:97:y:1989:i:3:p:606-19

Contact details of provider:
Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637
Fax: (773) 753-0811
Email:
Web page: http://www.journals.uchicago.edu/JPE/home.html

Order Information:
Web: http://www.journals.uchicago.edu/JPE/order1.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Other versions of this item:

Paper
- Peter Diamond & Drew Fudenberg, 1987. "Rational Expectations Business Cycles in Search Equilibrium," Working papers 465, Massachusetts Institute of Technology (MIT), Department of Economics.

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Bill Dupor, 2005. "Keynesian Conundrum: Multiplicity and Time Consistent Stabilization," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(1), pages 154-177, January. [Downloadable!] (restricted)
Paul Krugman, 1989. "History Vs. Expectations," NBER Working Papers 2971, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Jeffrey A. Miron, 1990. "The Economics of Seasonal Cycles," NBER Working Papers 3522, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Kiminori Matsuyama, 2002. "Explaining Diversity: Symmetry-Breaking in Complementarity Games," American Economic Review, American Economic Association, vol. 92(2), pages 241-246, May. [Downloadable!] (restricted)
Other versions:
- Kiminori Matsuyama, 2002. "Explaining Diversity: Symmetry-Breaking in Complementarity Games," Discussion Papers 1336, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
Francis X. Diebold & Glenn D. Rudebusch, 1994. "Measuring Business Cycles: A Modern Perspective," NBER Working Papers 4643, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Diebold & Rudebusch, . "Measuring Business Cycle: A Modern Perspective," Home Pages _061, University of Pennsylvania. [Downloadable!]
- Diebold, Francis X & Rudebusch, Glenn D, 1996. "Measuring Business Cycles: A Modern Perspective," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 67-77, February. [Downloadable!] (restricted)
Antonio Ciccone & Kiminori Matsuyama, 1993. "Start-Up Costs and Pecuniary Externalities as Barriers to Economic Development," NBER Working Papers 4363, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Antonio Ciccone & Kiminori Matsuyama, 1993. "Start-up costs and pecuniary externalities as barriers to economic development," Discussion Paper / Institute for Empirical Macroeconomics 83, Federal Reserve Bank of Minneapolis. [Downloadable!]
- Antonio Ciccone & Kiminori Matsuyama, 1995. "Start-up Costs and Pecuniary Externalities as Barriers to Economic Development," Economics Working Papers 142, Department of Economics and Business, Universitat Pompeu Fabra.
- Antonio Ciccone & Kiminori Matsuyama, 1992. "Start-up Costs and Pecuniary Externalities as Barriers to Economic Development," Discussion Papers 1031, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
- Cissone, A. & Matsuyama, K., 1992. "Start-Up Costs and Pecuniary Externalities as Barriers to Economic Development," Papers e-92-14, Stanford - Hoover Institution.
- Ciccone, A. & Matsuyama, K., 1993. "Start-Up Costs and Pecuniary Externalities as Barriers to Economic Development," Papers 533, Stockholm - International Economic Studies.
- Ciccone, Antonio & Matsuyama, Kiminori, 1996. "Start-up costs and pecuniary externalities as barriers to economic development," Journal of Development Economics, Elsevier, vol. 49(1), pages 33-59, April. [Downloadable!] (restricted)
Melvyn G. Coles & Abhinay Muthoo, 2000. "Bargaining Equilibrium in a Non-Stationary Environment," Econometric Society World Congress 2000 Contributed Papers 0472, Econometric Society. [Downloadable!]
Other versions:
- Melvyn G. Coles & Abhinay Muthoo, 2000. "Bargaining Equilibrium in a Non-Stationary Environment," ILR working papers 051, Institute for Labour Research. [Downloadable!]
- Melvyn G. Coles & Abhinay Muthoo, 2000. "Bargaining equilibrium in a non-stationary environment," Economics Discussion Papers 505, University of Essex, Department of Economics.
Bunzel, H. & Bhattacharya, J, 2003. "Chaotic planning solutions in the textbook model of labor market search and matching," Discussion Paper 15, Tilburg University, Center for Economic Research. [Downloadable!]
Bhattacharya, Joydeep & Bunzel, Helle, 2003. "Dynamics of the planning solution in the discrete−time textbook model of labor market search and matching," Staff General Research Papers 10253, Iowa State University, Department of Economics.
Kiminori Matsuyama, 1999. "Playing Multiple Complementarity Games Simultaneously," Discussion Papers 1240, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
Godfrey Keller & Kevin Roberts & Margaret Stevens, 2007. "Unemployment, Particiation and Market Size," Economics Series Working Papers 362, University of Oxford, Department of Economics. [Downloadable!]
Angelo Antoci & Massimiliano Landi & Pier Luigi Sacco, 2006. "Expectations, Animal Spirits, and Evolutionary Dynamics," Working Papers 10-2006, Singapore Management University, School of Economics. [Downloadable!]
Dale T. Mortensen, 1991. "Equilibrium Unemployment Cycles," Discussion Papers 939, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
C.D. Aliprantis & G. Camera, 2004. "A Theoretical Foundation for Bilateral Matching Mechanisms," Econometric Society 2004 North American Summer Meetings 10, Econometric Society. [Downloadable!]
Carlos Borondo, 1994. "La rigidez nominal de los precios de la Nueva Economía Keynesiana: una panorámica," Investigaciones Economicas, Fundación SEPI, vol. 18(2), pages 245-288, May. [Downloadable!]
Inna Cabelkova, 2001. "Entry Restrictions, Corruption and Extortion in the Context of Transition," CERGE-EI Working Papers wp172, The Center for Economic Research and Graduate Education - Economic Institute, Prague. [Downloadable!]
Joydeep Bhattacharya & Helle Bunzel, 2003. "Dynamics of the planning solution in the discrete-time textbook model of labor market search and matching," Economics Bulletin, Economics Bulletin, vol. 5(19), pages 1-10. [Downloadable!]
Dale T. Mortensen, 2007. "Island Matching," NBER Working Papers 13287, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Kiminori Matsuyama, 1993. "Modeling Complementarity in Monopolistic Competition," Discussion Papers 1028, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
Other versions:
- Kiminori Matsuyama, 1993. "Modelling complementarity in monopolistic competition," Discussion Paper / Institute for Empirical Macroeconomics 81, Federal Reserve Bank of Minneapolis. [Downloadable!]
Krishna, Kala & Yavas, Cemile, 2001. "Lumpy Consumer Durables, Market Power, and Endogenous Business Cycles," Working Papers 3-01-1, Pennsylvania State University, Department of Economics. [Downloadable!]

Statistics

Access and download statistics

Did you know? Apart from a small start up grant in the 1990's, RePEc has received no funding and lives on the help of volunteers.

This page was last updated on 2008-10-3.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.