Bingöl Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi

Yazarlar: Wei-bin ZHANG

Konular:İktisat

DOI:10.33399/biibfad.644677

Anahtar Kelimeler:Business cycles,Solow model,Dixit-Stiglitz model,Monopolistic competition

Özet: The purpose of this study is to explain business cycles by developing a neoclassical growth model with perfect and monopolistic competition. The study generalizes the model by Zhang (2019) by making all the constant coefficients to be time dependent. The model determines income and wealth distribution on the basis of Walrasian general equilibrium theory, neoclassical growth theory, and Dixit-Stiglitz monopolistic competitive theory. The paper makes a unique contribution to the literature of economic growth with perfect and monopolistic competition by showing existence of business cycles due to exogenous shocks in the model with the economic mechanisms in the three main models of economic theory. The study shows how different shocks cause business cycles as argued by real business theory in macroeconomics.

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