Indeterminacy, aggregate demand, and the real business cycle

• 成果类型: Article
• 署名作者: Benhabib, J; Wen, Y
• 署名单位: New York University; Cornell University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2003.08.011
• 发表日期: 2004
• 页码: 503-530
• 关键词: Indeterminacy; Real business cycles; capacity utilization demand shocks; increasing-returns-to-scale

摘要

We show that under indeterminacy aggregate demand shocks are able to explain not only aspects of actual fluctuations that standard RBC models predict fairly well, but also aspects of actual fluctuations that standard RBC models cannot explain, Such as the hump-shaped, trend reverting impulse responses to transitory shocks found in US output (Cogley and Nason, Am. Econom. Rev. 85 (1995) 492); the large forecastable movements and comovements of output, consumption and hours (Rotemberg and Woodford. Am. Econom. Rev. 86 (1996) 71); and the fact that Consumption appears to lead output and investment over the business cycle. Indeterminacy arises in Our model due to capacity utilization and mild increasing returns to scale. (C) 2003 Elsevier B.V. All rights reserved.