Rational Expectations Business Cycles in Search Equilibrium
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.
When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:97:y:1989:i:3:p:606-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division)
If references are entirely missing, you can add them using this form.