Lumpy Consumer Durables, Market Power, and Endogenous Business Cycles

In this paper, we show that lumpy consumer durables and market power can generate endogenous cycles consistent with the facts. Past sales determine the current market size of durable goods. Larger past sales, ceteris paribus, thus, naturally, result in a smaller current market size and income. In this manner, the seeds of a downturn are sown in an upturn

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Year of publication:	2004
Authors:	Krishna, Kala ; Sahin, Cemile
Publisher:	[S.l.] : SSRN
Subject:	Marktmacht \| Market power \| Dauerhafte Konsumgüter \| Durable goods \| Konjunkturtheorie \| Business cycle theory \| Einkommensverteilung \| Income distribution \| Konsumgüter \| Consumer goods

Extent:	1 Online-Ressource (17 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Canadian Journal of Economics, Vol. 37, No. 2, pp. 375-391, May 2004
Classification:	E32 - Business Fluctuations; Cycles ; E13 - Neoclassical
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014072221