A Non-Competitive, Equilibrium Model Of FluctuationsRobert E. Hall
NBER Working Paper No. 2576 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.
Machine-readable bibliographic record - MARC, RIS, BibTeX Document Object Identifier (DOI): 10.3386/w2576 Users who downloaded this paper also downloaded* these:
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