TY - JOUR

T1 - Sunspot equilibria in a monetary real business cycle model

AU - Heinemann, Maik

AU - Marchlewitz, Gilbert

PY - 1996/12/1

Y1 - 1996/12/1

N2 - In this paper a modification of the cash-in-advance real business cycle model is introduced in which the possibility of any credit contract is excluded. We show that for some parameter settings the model displays familiar saddle-point stability whereas for other constellations the steady state is a sink. In those cases, sunspot solutions are obtained.

AB - In this paper a modification of the cash-in-advance real business cycle model is introduced in which the possibility of any credit contract is excluded. We show that for some parameter settings the model displays familiar saddle-point stability whereas for other constellations the steady state is a sink. In those cases, sunspot solutions are obtained.

KW - Real business cycles

KW - Sunspots

KW - Economics

UR - http://www.scopus.com/inward/record.url?scp=0030299460&partnerID=8YFLogxK

U2 - 10.1016/s0165-1765(96)00934-2

DO - 10.1016/s0165-1765(96)00934-2

M3 - Journal articles

VL - 53

SP - 305

EP - 310

JO - Economics Letters

JF - Economics Letters

SN - 0165-1765

IS - 3

ER -