Hours and effort variation in sunspot-based business cycle theory

This paper analyzes the role of variable work effort in inducing sunspot equilibria in real business cycle models. Not only is it demonstrated that variable workers' work intensity reduces the degree of increasing returns that is needed to generate indeterminacy but it is also shown that this can be done without assuming a very elastic supply of labor.

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Year of publication:	2008-03-13
Authors:	Weder, Mark
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 5.2008, 12, p. 1-12
Publisher:	AccessEcon
Subject:	Indeterminacy

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Extent:	application/pdf
Type of publication:	Article
Classification:	E3 - Prices, Business Fluctuations, and Cycles ; E0 - Macroeconomics and Monetary Economics. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010630314