TY  - JOUR
AU  - Hall,Robert E.
TI  - A Non-Competitive, Equilibrium Model Of Fluctuations
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2576
PY  - 1988
Y2  - April 1988
UR  - http://www.nber.org/papers/w2576
L1  - http://www.nber.org/papers/w2576.pdf
N1  - Author contact info:
Robert E. Hall
Hoover Institution
Stanford University
Stanford, CA  94305-6010
Tel: 650/723-2215
E-Mail: rehall@gmail.com
AB  - An equilibrium model of fluctuations has two components: an elastic labor supply schedule and a source of shifts of the labor demand schedule. In the real business cycle model, shifts of labor demand follow from vibrations in the production function. In the model of this paper, shifts of labor demand are the result of changes in preferences. Total real GNP falls when demand shifts away from goods produced by sectors with market power and toward competitive sectors. The observed cyclical stability of relative prices is consistent with such demand shifts.
ER  -