Investment Demand Beliefs and Involuntary Unemployment in a Stock Market Overlapping Generations Model
نویسندگان
چکیده
It is the aim of this paper to model involuntary unemployment in Magill and Quinzii's (2003) seminal stock market with non-shiftable capital affine equity-price expectations. In contrast New-Keynesian macro-models, not traced back inflexible prices wage rates, but aggregate investment based on investors'“beliefs” (Farmer, 2020) about demand. After setting up model, sufficient conditions for existence dynamic stability a Golden Rule steady state are presented comparative dynamics investigated. While an increase investor optimism decreases short long run, smaller savings rate does only temporarily.
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ژورنال
عنوان ژورنال: Theoretical Economics Letters
سال: 2023
ISSN: ['2162-2078', '2162-2086']
DOI: https://doi.org/10.4236/tel.2023.133031