Various Concepts of Hysteresis Applied in Economics
Different types of hysteresis are applied in order to describe persistence phenomena in micro- and macroeconomics. On the microeconomic level sunk adjustment costs generate "genuine" hysteresis where temporary exogenous shocks lead to switches between different "branches" of an entire input-output-relation (i.e. "multibranch non-linearity"). The shape of the hysteresis loop changes when an adequate aggregation towards a macroeconomic relation is conducted over heterogeneous micro elements. Hysteresis-relations are based on a local structural instability in the case of a branch-to-branch-transition. However, the persistence characteristics of first order difference (differential) equations with unit (zero) roots--which are based on a global indifference-instability--are in economics commonly labeled as "hysteresis" as well. Copyright 2002 by Blackwell Publishers Ltd
If 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.
Volume (Year): 16 (2002)
Issue (Month): 2 (April)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0950-0804|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0950-0804|