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dc.contributor.authorBeaudry, Paulen_US
dc.contributor.authorPortier, Francken_US
dc.date.accessioned2012-01-27en_US
dc.date.accessioned2012-01-31T14:14:09Z-
dc.date.available2012-01-31T14:14:09Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/54973-
dc.description.abstractBusiness cycles reflect changes over time in the amount of trade between individuals. In this paper we show that incorporating explicitly intra-temporal gains from trade between individuals into a macroeconomic model can provide new insight into the potential mechanisms driving economic fluctuations as well as modify key policy implications. We first show how a gains from trade approach can easily explain why changes in perceptions about the future (including news about the future and risk shocks) can cause booms and bust. We then turn to fiscal policy, and discuss under what conditions fiscal multipliers can be observed. While much of our analysis is conducted in a flexible price environment, we also present implications of our model for a sticky price environments, as it allows to understand stable-inflation boom-bust cycles. The source of the explicit gains from trade in our setup derives from simply assuming that in the short run workers are not perfect mobile across all sectors of the economy. We provide evidence from the PSID in support of this modeling assumption.en_US
dc.language.isoengen_US
dc.publisherZentrum für Europäische Wirtschaftsforschung (ZEW) Mannheimen_US
dc.relation.ispartofseriesZEW Discussion Papers 12-002en_US
dc.subject.jelE32en_US
dc.subject.ddc330en_US
dc.subject.keywordbusiness cycleen_US
dc.subject.keywordinvestmenten_US
dc.subject.keywordheterogeneous agentsen_US
dc.subject.stwKonjunkturen_US
dc.subject.stwMakroökonomischer Einflussen_US
dc.subject.stwHandelen_US
dc.subject.stwPrognoseen_US
dc.subject.stwWirtschaftspolitiken_US
dc.subject.stwTheorieen_US
dc.titleA gains from trade perspective on macroeconomic fluctuationsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn684335182en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:zewdip:12002-
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ZEW Discussion Papers

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