A Hicksian Two-Sector Model of Cycles and Growth

Hajime Hori
Additional contact information
Hajime Hori: Tohoku University

Chapter Chapter 2 in Business Cycle Dynamics and Stabilization Policies, 2017, pp 33-75 from Springer

Abstract: Abstract This chapter analyzes cycles and growth using a dynamic version of the Hicksian two-sector model. Two types of friction, nominal wage stickiness and non-shiftability of capital, are present. It is found that sectoral imbalances caused by the non-shiftablilty of capital are corrected in finite time through investment allocation and that the possibility of cycles depends on the speed of nominal wage adjustment. The arriving order of the turning points of some important economic variables is established.

Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:advchp:978-981-10-3081-9_2

Ordering information: This item can be ordered from
http://www.springer.com/9789811030819

DOI: 10.1007/978-981-10-3081-9_2

Access Statistics for this chapter

More chapters in Advances in Japanese Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().