Dynamic Coordination and the Optimal Stimulus Policies
Bibliographic Data
| ID | 9709643 |
|---|---|
| Authors | Bernardo Guimaraes (0000-0003-0098-2174, Sao Paulo School of Economics – FGV, corresponding author), Caio Machado (0000-0002-5545-6270, Pontificia Universidad Católica de Chile) |
| Year | 2018 |
| Volume | 128 |
| Issue | 615 |
| Pages | 2785-2811 |
| Publication date | 2018-11-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/ecoj.12547 |
| OpenAlex | W2754011027 |
| Language | EN |
| Citations received | 1 |
| References cited | 48 |
This article studies stimulus policies in a simple macroeconomic model featuring a dynamic coordination problem that arises from demand externalities and fixed costs of investment. In times of low economic activity, firms face low demand and hence have lower incentives for investing, which reinforces their low‐demand expectations. In a benchmark case with no shocks, the economy might get trapped in a low‐output regime and a social planner would be particularly keen to incentivise investment at times of low economic activity. However, this result vanishes once shocks are considered
Demand shock · Economics · Externality · Incentive · Investment (military · Macroeconomics · Microeconomics · Monetary economics · Planner · Social planner · Stimulus (psychology · Economic theories and models · Economic Theory and Institutions · Economic Theory and Policy
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Coordinating Regime Switches
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Booms and Banking Crises
Implementation Cycles
Industrialization and the Big Push
Avoiding Liquidity Traps
Shopping Externalities and Self-Fulfilling Unemployment Fluctuations
Confidence, Crashes and Animal Spirits
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,33 |
| Citation span | 2023 - 2023 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |