| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5062123 | Economics Letters | 2007 | 7 Pages |
Abstract
This paper reproduces Lucas's analysis of the costs of business cycles in an economy with a low probability, crash state in consumption growth. It is shown that the presence of a crash state dramatically increases the costs of consumption volatility.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kevin D. Salyer,