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A Three-Good Overlapping-Generations General Equilibrium Efficient Business Cycle Model

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  • JULAN DU

    ()
    (Department of Economics, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong, China)

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    Abstract

    This paper presents an overlapping-generations general equilibrium model of efficient business cycles. It considers three types of goods in an economy: primary goods, intermediate goods and final goods. It shows that complete division of labour with business cycles and unemployment can be the Pareto optimal regime. It also sheds light on the transmission of business cycles between sectors and across economies.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Division of Labor & Transaction Costs.

    Volume (Year): 01 (2006)
    Issue (Month): 02 ()
    Pages: 127-162

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    Handle: RePEc:wsi:dltcxx:v:01:y:2006:i:02:p:127-162

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    Related research

    Keywords: Efficient business cycles; durable goods; nondurable goods; division of labour; specialized learning by doing; unemployment;

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