| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5083705 | International Review of Economics & Finance | 2013 | 15 Pages |
Abstract
⺠I consider an economy with habit persistence and fiscal government policy. ⺠I show that there exists a continuum of competitive transitional equilibrium paths. ⺠Indeterminacy also emerges in the socially efficient second-best allocation. ⺠Self-fulfilling beliefs under indeterminacy drive endogenous business cycles.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Hyun Park,