We show that a one-sector real business cycle model with mild increasing returns-to-scale, variable capital utilization and saddle-path stability is able to produce qualitatively realistic business cycles driven solely by disturbances to government purchases. Due to an endogenous increase in labor p
Dynamic employment and hours effects of government spending shocks
β Scribed by Mingwei Yuan; Wenli Li
- Publisher
- Elsevier Science
- Year
- 2000
- Tongue
- English
- Weight
- 420 KB
- Volume
- 24
- Category
- Article
- ISSN
- 0165-1889
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