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Imperfect Competition, Nonclearing Markets and Business Cycles
This timely title gives a full account of the field, starting with the various general equilibrium traditions that ultimately led to this research area, and then describing the evolution of the models, with special emphasis on how they succeeded in representing features of dynamics that other models failed to reproduce.
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Critical Acclaim
Contributors
Contents
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In recent years the field of dynamic stochastic general equilibrium models has emerged as the central field of macroeconomics. These models give a unified treatment of growth and fluctuations in a general equilibrium framework where all agents behave rationally. A particularly successful part of this field introduces imperfect competition and nonclearing markets into this framework, which also leads to the study of problems like unemployment. This timely volume gives a full account of the field, starting with the various general equilibrium traditions that ultimately led to this research area, and then describing the evolution of the models, with special emphasis on how they succeeded in representing features of dynamics that other models failed to reproduce.
This collection will be an invaluable source of reference for professors and graduate students specializing in macroeconomics. It should also be of interest to students of the history of economic thought, as it shows how apparently antagonistic subfields ended up merging to produce a better synthetic theory.
This collection will be an invaluable source of reference for professors and graduate students specializing in macroeconomics. It should also be of interest to students of the history of economic thought, as it shows how apparently antagonistic subfields ended up merging to produce a better synthetic theory.
Critical Acclaim
‘Modern macrotheory features some ideas that are either very deep or very peculiar. This excellent collection includes some of the original sources of those ideas, and then goes on to show by example how modifying or abandoning them can lead to more interesting and – I think – more realistic macroeconomic stories. It is an education in itself.’
– Robert M. Solow, Massachusetts Institute of Technology, US
– Robert M. Solow, Massachusetts Institute of Technology, US
Contributors
26 articles, dating from 1928 to 2005
Contributors include: K.J. Arrow, G.A. Calvo, R.W. Clower, G. Debreu, J.H. Drèze, F.E. Kydland, R.E. Lucas, Jr., T. Negishi, E.C. Prescott, F.P. Ramsey
Contributors include: K.J. Arrow, G.A. Calvo, R.W. Clower, G. Debreu, J.H. Drèze, F.E. Kydland, R.E. Lucas, Jr., T. Negishi, E.C. Prescott, F.P. Ramsey
Contents
Contents:
Acknowledgements
Introduction Jean-Pascal Bénassy
PART I FOUNDATIONS
A Growth and Intertemporal Maximization
1. F.P. Ramsey (1928), ‘A Mathematical Theory of Saving’
B Walrasian Equilibrium
2. Kenneth J. Arrow and Gerard Debreu (1954), ‘Existence of an Equilibrium for a Competitive Economy’
3. K.J. Arrow (1964), ‘The Role of Securities in the Optimal Allocation of Risk-Bearing’
C General Equilibrium under Price Rigidities
4. Robert Clower (1965), ‘The Keynesian Counterrevolution: A Theoretical Appraisal’
5. Robert J. Barro and Herschel I. Grossman (1971), ‘A General Disequilibrium Model of Income and Employment’
6. Jacques H. Drèze (1975), ‘Existence of an Exchange Equilibrium Under Price Rigidities’
7. Jean-Pascal Bénassy (1975), ‘Neo-Keynesian Disequilibrium Theory in a Monetary Economy’
8. Joaquim Silvestre (1983), ‘Fixprice Analysis in Productive Economies’
D General Equilibrium under Imperfect Competition
9. Takashi Negishi (1961), ‘Monopolistic Competition and General Equilibrium’
10. Jean Jaskold Gabszewicz and Jean-Philippe Vial (1972), ‘Oligopoly “A la Cournot” in a General Equilibrium Analysis’
11. Jean-Pascal Bénassy (1988), ‘The Objective Demand Curve in General Equilibrium with Price Makers’
E Walrasian Cycles
12. Robert E. Lucas, Jr. (1972), ‘Expectations and the Neutrality of Money’
13. Finn E. Kydland and Edward C. Prescott (1982), ‘Time to Build and Aggregate Fluctuations’
14. John B. Long, Jr. and Charles I. Plosser (1983), ‘Real Business Cycles’
PART II NON-WALRASIAN CYCLES
A Real and Nominal Rigidities
15. Lars E.O. Svensson (1986), ‘Sticky Goods Prices, Flexible Asset Prices, Monopolistic Competition, and Monetary Policy’
16. Jean-Pierre Danthine and John B. Donaldson (1991), ‘Risk Sharing, the Minimum Wage, and the Business Cycle’
17. Jang-Ok Cho (1993), ‘Money and the Business Cycle with One-period Nominal Contracts’
18. Jean-Olivier Hairault and Franck Portier (1993), ‘Money, New-Keynesian Macroeconomics and the Business Cycle’
19. Jean-Pascal Bénassy (1995), ‘Money and Wage Contracts in an Optimizing Model of the Business Cycle’
20. Jang-Ok Cho, Thomas F. Cooley and Louis Phaneuf (1997), ‘The Welfare Cost of Nominal Wage Contracting’
B Dynamics and Persistence
21. Guillermo A. Calvo (1983), ‘Staggered Prices in a Utility-Maximizing Framework’
22. Tack Yun (1996), ‘Nominal Price Rigidity, Money Supply Endogeneity, and Business Cycles’
23. Torben M. Andersen (1998), ‘Persistency in Sticky Price Models’
24. Olivier Jeanne (1998), ‘Generating Real Persistent Effects of Monetary Shocks: How Much Nominal Rigidity Do We Really Need?’
25. Jean-Pascal Bénassy (2003), ‘Output and Inflation Dynamics under Price and Wage Staggering: Analytical Results’
26. Lawrence J. Christiano, Martin Eichenbaum and Charles L. Evans (2005), ‘Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy’
Name Index
Acknowledgements
Introduction Jean-Pascal Bénassy
PART I FOUNDATIONS
A Growth and Intertemporal Maximization
1. F.P. Ramsey (1928), ‘A Mathematical Theory of Saving’
B Walrasian Equilibrium
2. Kenneth J. Arrow and Gerard Debreu (1954), ‘Existence of an Equilibrium for a Competitive Economy’
3. K.J. Arrow (1964), ‘The Role of Securities in the Optimal Allocation of Risk-Bearing’
C General Equilibrium under Price Rigidities
4. Robert Clower (1965), ‘The Keynesian Counterrevolution: A Theoretical Appraisal’
5. Robert J. Barro and Herschel I. Grossman (1971), ‘A General Disequilibrium Model of Income and Employment’
6. Jacques H. Drèze (1975), ‘Existence of an Exchange Equilibrium Under Price Rigidities’
7. Jean-Pascal Bénassy (1975), ‘Neo-Keynesian Disequilibrium Theory in a Monetary Economy’
8. Joaquim Silvestre (1983), ‘Fixprice Analysis in Productive Economies’
D General Equilibrium under Imperfect Competition
9. Takashi Negishi (1961), ‘Monopolistic Competition and General Equilibrium’
10. Jean Jaskold Gabszewicz and Jean-Philippe Vial (1972), ‘Oligopoly “A la Cournot” in a General Equilibrium Analysis’
11. Jean-Pascal Bénassy (1988), ‘The Objective Demand Curve in General Equilibrium with Price Makers’
E Walrasian Cycles
12. Robert E. Lucas, Jr. (1972), ‘Expectations and the Neutrality of Money’
13. Finn E. Kydland and Edward C. Prescott (1982), ‘Time to Build and Aggregate Fluctuations’
14. John B. Long, Jr. and Charles I. Plosser (1983), ‘Real Business Cycles’
PART II NON-WALRASIAN CYCLES
A Real and Nominal Rigidities
15. Lars E.O. Svensson (1986), ‘Sticky Goods Prices, Flexible Asset Prices, Monopolistic Competition, and Monetary Policy’
16. Jean-Pierre Danthine and John B. Donaldson (1991), ‘Risk Sharing, the Minimum Wage, and the Business Cycle’
17. Jang-Ok Cho (1993), ‘Money and the Business Cycle with One-period Nominal Contracts’
18. Jean-Olivier Hairault and Franck Portier (1993), ‘Money, New-Keynesian Macroeconomics and the Business Cycle’
19. Jean-Pascal Bénassy (1995), ‘Money and Wage Contracts in an Optimizing Model of the Business Cycle’
20. Jang-Ok Cho, Thomas F. Cooley and Louis Phaneuf (1997), ‘The Welfare Cost of Nominal Wage Contracting’
B Dynamics and Persistence
21. Guillermo A. Calvo (1983), ‘Staggered Prices in a Utility-Maximizing Framework’
22. Tack Yun (1996), ‘Nominal Price Rigidity, Money Supply Endogeneity, and Business Cycles’
23. Torben M. Andersen (1998), ‘Persistency in Sticky Price Models’
24. Olivier Jeanne (1998), ‘Generating Real Persistent Effects of Monetary Shocks: How Much Nominal Rigidity Do We Really Need?’
25. Jean-Pascal Bénassy (2003), ‘Output and Inflation Dynamics under Price and Wage Staggering: Analytical Results’
26. Lawrence J. Christiano, Martin Eichenbaum and Charles L. Evans (2005), ‘Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy’
Name Index