CAN HERDING EXPLAIN CYCLIC CO-MOVEMENT?

Bernd Süssmuth ()
Additional contact information
Bernd Süssmuth: Department of Economics, University of Munich, Ludwigstr. 28/RG, D-80539 Munich, Germany

International Game Theory Review (IGTR), 2002, vol. 04, issue 01, 33-51

Abstract: Recently, co-movement and the synchronised pattern of business cycles on various scales (sectoral, national, etc.) attract growing attention among macroeconomists. This paper integrates qualitative implications of a simple endogenously-timed herding model's logic into an investment cycle model. It is shown that this integrated argumentation is generally applicable for models that generate endogenous cyclic dynamics to explain the coupling of frequencies. Informational externalities induced by herding on the micro-level therefore seem to be an adequate argumentation behind business cycle models that capture co-movement by means of the so-called "mode-locking" mechanism.

Keywords: Herding; Investment Cycles; Nonlinear Entrainment (search for similar items in EconPapers)
JEL-codes: B4 C0 C6 C7 D5 D7 M2 (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219198902000537
Access to full text is restricted to subscribers

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:wsi:igtrxx:v:04:y:2002:i:01:n:s0219198902000537

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219198902000537

Access Statistics for this article

International Game Theory Review (IGTR) is currently edited by David W K Yeung

More articles in International Game Theory Review (IGTR) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().