Lumpy consumer durables, market power, and endogenous business cycles

Kala Krishna () and Cemile Yavas

Canadian Journal of Economics, 2004, vol. 37, issue 2, 375-391

Abstract: 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.

JEL-codes: E13 E32 (search for similar items in EconPapers)
Date: 2004
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Working Paper: Lumpy Consumer Durables, Market Power, and Endogenous Business Cycles (2001)
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