Increasing returns, capital utilization,
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Jang-Ting Guo
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Article
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2004
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Elsevier Science
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English
โ 499 KB
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