Format:
1 Online-Ressource (31 Seiten)
ISSN:
1436-1086
Series Statement:
Sonderforschungsbereich 373: Quantification and Simulation of Economic Processes 2002,2002,35
Content:
We apply a dynamic general equilibrium model to the period of the Great Depression. In particular, we examine a modi¯cation of the real business cycle model in which the possibility of indeterminacy of equilibria arises. In other words, agents' self-ful¯lling expectations can serve as a primary impulse behind °uctuations. We find that the model, driven only by these measured sunspot shocks, can explain well the entire Depression era. That is, the decline from 1929-1932, the subsequent slow recovery, and the recession that occurred in 1937-1938.
Language:
English
URN:
urn:nbn:de:kobv:11-10048937
URL:
Volltext
(kostenfrei)
Bookmarklink