Abstract
This paper presents a model of endogenous business cycles in the presence of knowledge spillovers and a time-to-build restriction. There are two key assumptions that characterize the model: (i) the payoff to each firm depends on the aggregate state of knowledge, and (ii) the innovation of a project is time-consuming. Under those assumptions, a simple structure is shown to be described by a piecewise linear difference equation with a discontinuity. We show that the resulting dynamics generated by such a dynamical system leads to an asymmetric periodic cycle of arbitrary period that appears to switch repeatedly between different regimes.
| Original language | English |
|---|---|
| Pages (from-to) | 175-189 |
| Number of pages | 15 |
| Journal | Journal of Economic Behavior and Organization |
| Volume | 54 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - Jun 2004 |
Fingerprint
Keywords
- Asymmetric periodic cycles
- Knowledge spillovers
- Piecewise linear difference equation
- Threshold nonlinearities
- Time-to-build
ASJC Scopus subject areas
- Organizational Behavior and Human Resource Management
- Economics and Econometrics
Cite this
Threshold nonlinearities and asymmetric endogenous business cycles. / Ishida, Junichiro; Yokoo, Masanori.
In: Journal of Economic Behavior and Organization, Vol. 54, No. 2, 06.2004, p. 175-189.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Threshold nonlinearities and asymmetric endogenous business cycles
AU - Ishida, Junichiro
AU - Yokoo, Masanori
PY - 2004/6
Y1 - 2004/6
N2 - This paper presents a model of endogenous business cycles in the presence of knowledge spillovers and a time-to-build restriction. There are two key assumptions that characterize the model: (i) the payoff to each firm depends on the aggregate state of knowledge, and (ii) the innovation of a project is time-consuming. Under those assumptions, a simple structure is shown to be described by a piecewise linear difference equation with a discontinuity. We show that the resulting dynamics generated by such a dynamical system leads to an asymmetric periodic cycle of arbitrary period that appears to switch repeatedly between different regimes.
AB - This paper presents a model of endogenous business cycles in the presence of knowledge spillovers and a time-to-build restriction. There are two key assumptions that characterize the model: (i) the payoff to each firm depends on the aggregate state of knowledge, and (ii) the innovation of a project is time-consuming. Under those assumptions, a simple structure is shown to be described by a piecewise linear difference equation with a discontinuity. We show that the resulting dynamics generated by such a dynamical system leads to an asymmetric periodic cycle of arbitrary period that appears to switch repeatedly between different regimes.
KW - Asymmetric periodic cycles
KW - Knowledge spillovers
KW - Piecewise linear difference equation
KW - Threshold nonlinearities
KW - Time-to-build
UR - http://www.scopus.com/inward/record.url?scp=1842661599&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=1842661599&partnerID=8YFLogxK
U2 - 10.1016/j.jebo.2003.04.006
DO - 10.1016/j.jebo.2003.04.006
M3 - Article
AN - SCOPUS:1842661599
VL - 54
SP - 175
EP - 189
JO - Journal of Economic Behavior and Organization
JF - Journal of Economic Behavior and Organization
SN - 0167-2681
IS - 2
ER -