Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79695
Authors: 
Göcke, Matthias
Year of Publication: 
2013
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung - Session: Mathematical and Quantitative Methods F20-V1
Abstract: 
Consequences of path-dependent supply side hysteresis on the market equilibrium are illustrated. Supply is only a subsystem of the entire market with its forcing variable (price) being endogenous from the perspective of the entire market. This results in feedbacks on the equilibrium of price and quantity if transient exogenous disturbances occur. Aggregate hysteresis is modelled by continuous dynamics showing similarities to mechanical play . This contrast the standard firm level modelling of hysteresis resulting from discontinuous activity/inactivity switches. Non-linear play-dynamics are captured in a simple linearized way, just by adding two parameters to a supply equation.
JEL: 
C51
C61
C39
Document Type: 
Conference Paper

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