Small departures from rationality magnify fluctuations

Joao Ricardo Faria ()
Additional contact information
Joao Ricardo Faria: University of Texas at Dallas

Economics Bulletin, 2004, vol. 5, issue 5, 1-5

Abstract: This note shows that introducing into the economy a few number of agents who do not support sunspots theories magnifies endogenous business cycles fluctuations when the current state of the economic system is sensitive enough to traders' forecasts, or equivalently, in presence of indeterminacy.

JEL-codes: E3 (search for similar items in EconPapers)
Date: 2004-02-18
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/pubs/EB/2004/Volume5/EB-04E30002A.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:ebl:ecbull:eb-04e30002

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().