Lumpy consumer durables, market power, and endogenous business cycles

Kala Krishna; Cemile Yavas

doi:10.1111/j.0008-4085.2004.00007.x

Lumpy consumer durables, market power, and endogenous business cycles

Kala Krishna
, Cemile Yavas

Economics

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

In this paper we show that lumpy consumer durables and market power can generate endogenous cycles consistent with the facts. Past sales determine the current market size of durable goods. Larger past sales, ceteris paribus, thus naturally result in a smaller current market size and income. In this manner, the seeds of a downturn are sown in an upturn.

Original language	English (US)
Pages (from-to)	375-391
Number of pages	17
Journal	Canadian Journal of Economics
Volume	37
Issue number	2
DOIs	https://doi.org/10.1111/j.0008-4085.2004.00007.x
State	Published - May 2004

All Science Journal Classification (ASJC) codes

Economics and Econometrics

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10.1111/j.0008-4085.2004.00007.x

Cite this

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abstract = "In this paper we show that lumpy consumer durables and market power can generate endogenous cycles consistent with the facts. Past sales determine the current market size of durable goods. Larger past sales, ceteris paribus, thus naturally result in a smaller current market size and income. In this manner, the seeds of a downturn are sown in an upturn.",

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AB - In this paper we show that lumpy consumer durables and market power can generate endogenous cycles consistent with the facts. Past sales determine the current market size of durable goods. Larger past sales, ceteris paribus, thus naturally result in a smaller current market size and income. In this manner, the seeds of a downturn are sown in an upturn.

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JO - Canadian Journal of Economics

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Lumpy consumer durables, market power, and endogenous business cycles

Abstract

All Science Journal Classification (ASJC) codes

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