Small departures from rationality magnify fluctuations
نویسنده
چکیده
This note shows that introducing into the economy a few number of agents who do not support sunspots theories magnifies endogenous business cycles fluctuations when the current state of the economic system is sensitive enough to traders' forecasts, or equivalently, in presence of indeterminacy. Citation: Gauthier, Stéphane, (2004) "Small departures from rationality magnify fluctuations." Economics Bulletin, Vol. 5, No. 5 pp. 1−5 Submitted: February 18, 2004. Accepted: February 18, 2004. URL: http://www.economicsbulletin.com/2004/volume5/EB−04E30002A.pdf
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