Equilibrium Models of Endogenous Fluctuations: an Introduction

Michael Woodford

NBER Working Paper No. 3360
Issued in May 1990
NBER Program(s):   EFG

These lectures comment upon recent theoretical models of endogenous fluctuations in economic dynamics, including both the literature on nonlinear deterministic cycles arid the literature on "sunspot equilibria". Two important themes include (1) reasons to be interested in models of purely endogenous fluctuations, even though actual economics are admittedly subject to exogenous stochastic shocks; and (2) the importance of market imperfections in making possible equilibria characterized by endogenous fluctuations of either of the two types.

(872 K)

Published: A. Vercelli and N. Dimitri, eds., Macroeconomics: A Survey of Research Strategies, New York, Oxford University Press, 1992

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