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Sunspot-Driven Business Cycles: An Overview

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  • Kazuo Mino

    (Faculty of Economics, Doshisha University)

Abstract

This paper reviews the real the real business cycle models that display equilibrium indeterminacy. We Â…first summarize the main fiÂ…ndings in the seminal contributions by Benhabib and Farmer (1994) and Farmer and Guo (1994). We then discuss the relevant extinctions of the baseline model explored in the last two decades. We also refer to the recent development in the fiÂ…eld after the global Â…financial crisis of 2007-2008.

Suggested Citation

  • Kazuo Mino, 2017. "Sunspot-Driven Business Cycles: An Overview," KIER Working Papers 973, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:973
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    File URL: http://www.kier.kyoto-u.ac.jp/DP/DP973.pdf
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    1. Chu, Angus C. & Liao, Chih-Hsing & Liu, Xiangbo & Zhang, Mengbo, 2021. "Indeterminacy in a matching model of money with productive government expenditure," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 497-516.

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    More about this item

    Keywords

    equilibrium indeterminacy; business cycles; sunspots; extrinsic uncertainty;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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