Business Cycles in a Dynamic General Equilibrium Model with Monopolistic and Perfect Competition

Wei-Bin Zhang

Bingol University Journal of Economics and Administrative Sciences, 2020, vol. 4, issue 1, 11-33

Abstract: The purpose of this study is to explain business cycles by developing a neoclassical growth model with perfect and monopolistic competition. The study generalizes the model by Zhang (2019) by making all the constant coefficients to be time dependent. The model determines income and wealth distribution on the basis of Walrasian general equilibrium theory, neoclassical growth theory, and Dixit-Stiglitz monopolistic competitive theory. The paper makes a unique contribution to the literature of economic growth with perfect and monopolistic competition by showing existence of business cycles due to exogenous shocks in the model with the economic mechanisms in the three main models of economic theory. The study shows how different shocks cause business cycles as argued by real business theory in macroeconomics.

Keywords: Business cycles; Solow growth model; periodic shocks; Dixit-Stiglitz model; monopolistic competition (search for similar items in EconPapers)
JEL-codes: C68 D41 D42 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repec.bingol.edu.tr/bgo/Business%20Cycles%2 ... ct%20Competition.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bgo:journl:v:4:y:2020:i:1:p:11-33repec/bgo/

DOI: 10.33399/biibfad.644677

Access Statistics for this article

Bingol University Journal of Economics and Administrative Sciences is currently edited by Halim Tatli

More articles in Bingol University Journal of Economics and Administrative Sciences from Bingol University, Faculty of Economics and Administrative Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Halim Tatli ().