Journalartikel

Jahr der Veröffentlichung: 2015

Seiten: 339-374

Zeitschrift: Metroeconomica: International Review of Economics

Bandnummer: 66

Heftnummer: 2

ISSN: 0026-1386

eISSN: 1467-999X

DOI Link: https://doi.org/10.1111/meca.12074

Verlag: Wiley

Abstract: 
Consequences of economic hysteresis are illustrated based on a standard market model which is extended by hysteresis dynamics. Hysteresis is implemented in a simple linearized way, similar to mechanical play'. As a novelty, both cases, hysteresis in supply and demand, are analysed separately as an explicit part of a supply and demand model. Explicitly modelling supply versus demand side hysteresis has two advantages. (1) Since (hysteretic) supply or demand is only a subsystem of the entire market, persistent endogenous feedback effects on price and quantity are addressed. (2) Differences in the remanent effects of transient shocks between demand and supply hysteresis become obvious.

Harvard-Zitierstil: Göcke, M. and Werner, L. (2015) Play Hysteresis in Supply or in Demand as Part of a Market Model, Metroeconomica, 66(2), pp. 339-374. https://doi.org/10.1111/meca.12074

APA-Zitierstil: Göcke, M., & Werner, L. (2015). Play Hysteresis in Supply or in Demand as Part of a Market Model. Metroeconomica. 66(2), 339-374. https://doi.org/10.1111/meca.12074