Endogenous business cycles in the Ramsey growth model

Detalhes bibliográficos
Autor(a) principal: Gomes, O.
Data de Publicação: 2006
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: https://ciencia.iscte-iul.pt/id/ci-pub-22752
http://hdl.handle.net/10071/15023
Resumo: The Ramsey model is an analytical structure aimed at explaining intertemporal optimal growth. As a consequence, business cycles cannot be generated resorting to this structure, unless one introduces some source of inefficiency. Our central argument is that firms forecast future demand using a simple rule and thus they fail to perceive the full extent in which demand is capable of growing. Hence, firms will not invest as much as it is economically feasible in each moment of time, and this mechanism leads eventually to business cycles. The paper contributes to the endogenous business cycles literature with an important new feature: we do not have to consider the labour market in order to generate fluctuations – the framework just assumes consumption and investment decisions.
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spelling Endogenous business cycles in the Ramsey growth modelEndogenous business cyclesRamsey growth modelNonlinear dynamicsChaosLogistic equationThe Ramsey model is an analytical structure aimed at explaining intertemporal optimal growth. As a consequence, business cycles cannot be generated resorting to this structure, unless one introduces some source of inefficiency. Our central argument is that firms forecast future demand using a simple rule and thus they fail to perceive the full extent in which demand is capable of growing. Hence, firms will not invest as much as it is economically feasible in each moment of time, and this mechanism leads eventually to business cycles. The paper contributes to the endogenous business cycles literature with an important new feature: we do not have to consider the labour market in order to generate fluctuations – the framework just assumes consumption and investment decisions.Faculty of Economics and Business in Zagreb2018-01-23T16:16:55Z2006-01-01T00:00:00Z20062018-01-23T16:14:57Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://ciencia.iscte-iul.pt/id/ci-pub-22752http://hdl.handle.net/10071/15023eng1331-5609Gomes, O.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:40:10Zoai:repositorio.iscte-iul.pt:10071/15023Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:18:34.231411Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Endogenous business cycles in the Ramsey growth model
title Endogenous business cycles in the Ramsey growth model
spellingShingle Endogenous business cycles in the Ramsey growth model
Gomes, O.
Endogenous business cycles
Ramsey growth model
Nonlinear dynamics
Chaos
Logistic equation
title_short Endogenous business cycles in the Ramsey growth model
title_full Endogenous business cycles in the Ramsey growth model
title_fullStr Endogenous business cycles in the Ramsey growth model
title_full_unstemmed Endogenous business cycles in the Ramsey growth model
title_sort Endogenous business cycles in the Ramsey growth model
author Gomes, O.
author_facet Gomes, O.
author_role author
dc.contributor.author.fl_str_mv Gomes, O.
dc.subject.por.fl_str_mv Endogenous business cycles
Ramsey growth model
Nonlinear dynamics
Chaos
Logistic equation
topic Endogenous business cycles
Ramsey growth model
Nonlinear dynamics
Chaos
Logistic equation
description The Ramsey model is an analytical structure aimed at explaining intertemporal optimal growth. As a consequence, business cycles cannot be generated resorting to this structure, unless one introduces some source of inefficiency. Our central argument is that firms forecast future demand using a simple rule and thus they fail to perceive the full extent in which demand is capable of growing. Hence, firms will not invest as much as it is economically feasible in each moment of time, and this mechanism leads eventually to business cycles. The paper contributes to the endogenous business cycles literature with an important new feature: we do not have to consider the labour market in order to generate fluctuations – the framework just assumes consumption and investment decisions.
publishDate 2006
dc.date.none.fl_str_mv 2006-01-01T00:00:00Z
2006
2018-01-23T16:16:55Z
2018-01-23T16:14:57Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://ciencia.iscte-iul.pt/id/ci-pub-22752
http://hdl.handle.net/10071/15023
url https://ciencia.iscte-iul.pt/id/ci-pub-22752
http://hdl.handle.net/10071/15023
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 1331-5609
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Faculty of Economics and Business in Zagreb
publisher.none.fl_str_mv Faculty of Economics and Business in Zagreb
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
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collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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