An Austrian Trade Cycle model with an Endogenous Value of Time

François Gardes ()
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François Gardes: Centre d'Economie de la Sorbonne, Paris School of Economics & Western Catholic University, https://cv.archives-ouvertes.fr/francois-gardes

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: The article proposes an explicit modelization of households behavior by describing the possible relationship between the inter-temporal substitution rate and the opportunity cost of time which could afford the missing link between consumers' choices and macro variables in an Austrian trade cycle tradition. The changes of the value of time during expansions and recessions involve direct and indirect changes of households' demand and saving which create shadow prices. The variations of shadow costs are related to the competitivity of markets restoring equilibria by means of associated changes in monetary prices

Keywords: Inter-temporal substitution rate; originary interest, psychological interest rate; psychological time; opportunity cost of time; austrian trade cycle (search for similar items in EconPapers)
JEL-codes: D31 J22 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2021-03
New Economics Papers: this item is included in nep-isf
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http://mse.univ-paris1.fr/pub/mse/CES2021/21025.pdf (application/pdf)
https://halshs.archives-ouvertes.fr/halshs-03325379

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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:21025

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