Template-Type: ReDIF-Paper 1.0
Author-Name: Rod  Cross
Author-Name-First: Rod 
Author-Name-Last: Cross
Author-Email: rod.cross@strath.ac.uk
Author-Workplace-Name: Department of Economics, University of Strathclyde
Author-Name: Hugh  McNamara
Author-Name-First: Hugh 
Author-Name-Last: McNamara
Author-Email: H.McNamara@ucc.ie
Author-Workplace-Name: Department of applied mathematics, University college Cork, Cork, Ireland.
Author-Name: Leonid  Kalachev
Author-Name-First: Leonid 
Author-Name-Last: Kalachev
Author-Email: kalachev@mso.umt.edu
Author-Workplace-Name: Department of Mathematical Sciences, University of Montana, Missoula, MT.
Author-Name: Alexei  Pokrovskii
Author-Name-First: Alexei 
Author-Name-Last: Pokrovskii
Author-Email: a.pokrovskii@ucc.ie
Author-Workplace-Name: Department of applied mathematics, University college Cork, Cork, Ireland.
Title: Hysteresis in the fundamentals of macroeconomics.
Abstract: Two fundamental problems in economic analysis concern the determination of aggregate output, and the determination of market prices and quantities. The way economic adjustments are made at the micro level suggests that the history of shocks to the economic environment matters. This paper presents tractable approach for introducing hysteresis into models of how aggregate output and market prices and quantities are determined.
Length: 34 pages
Creation-Date: 2010-03
Revision-Date: 
Publication-Status: 
File-URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2010/10-08_final.pdf
File-Format: Application/pdf
Number: 1008
Classification-JEL: C60, C65, E10.
Keywords: Hysteresis, Aggregate Output, Market Supply and Demand
Handle: RePEc:str:wpaper:1008