Overview

endogenous business cycle


Show Summary Details

Quick Reference

A model of business cycles where the sources of fluctuation are random shocks to the beliefs of the economic agents. These beliefs become self-fulfilling due to increasing returns to scale in some sector of the economy or at the aggregate level, or due to the presence of externalities in the agents' choices. See also real business cycle.

Subjects: Economics.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.