A Hayekian analysis of the term structure of production

Mulligan, Robert F.

doi:10.1007/s12113-002-1010-y

Cited by 43 publications

(29 citation statements)

References 4 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This paper builds on the insights of Cwik (1998), Garrison (2001), Hughes (1997), Keeler (2001), Mulligan (2002Mulligan ( , 2006, Wainhouse (1984)….It extends these works by using the most recent techniques of the panel data estimations. The present paper aims to measure the explanatory power of the Austrian theory in regard to the business cycles observed in France, Germany, UK andUSA between 1980 and2006.…”

mentioning

confidence: 91%

Austrian business cycle theory: Empirical evidence

Bismans¹,

Mougeot²

2009

Rev Austrian Econ

View full text Add to dashboard Cite

show abstract

mentioning

confidence: 91%

Austrian business cycle theory: Empirical evidence

Bismans¹,

Mougeot²

2009

Rev Austrian Econ

View full text Add to dashboard Cite

show abstract

“…Because this source of high unemployment results from high adjustment costs which frustrate resource allocation and adjustment of the production structure, rather than from real or nominal wage or price stickiness, this potential cause of recession, though labor-based, should be recognized as Austrian rather than Keynesian. Mulligan (2002) presents evidence that labor employment is reallocated over the business cycle in a manner similar to that predicted by Austrian business cycle theory for the physical capital it complements.…”

Section: The Austrian Theory Of the Business Cyclementioning

confidence: 53%

“…As with the Great Depression, poor policy prescriptions transformed what should have been a routine recession into a decade-long ordeal. Mulligan (2002) uses sectoral labor data as indicators of resource allocation among industrial sectors. Resources are reallocated among early, middle, and late stages of production in response to changes in nominal interest rates, as Austrian business cycle theory predicts.…”

Section: Qualitative Applications and Earlier Empiricsmentioning

confidence: 99%

Accounting for the business cycle: Nominal rigidities, factor heterogeneity, and Austrian capital theory

Mulligan

2006

Rev Austrian Econ

Self Cite

View full text Add to dashboard Cite

An Austrian interpretation of the New Keynesian small menu cost model of the business cycle is proposed. Austrian and New Keynesian business cycle theories share the feature that the cycle is generated by rigidities which prevent the economy from adapting instantaneously to changing conditions. Austrian business cycle theory is capital-based, focusing on credit expansion which artificially lowers interest rates and causes an investment boom and unsustainable business expansion. In contrast, the New Keynesian small menu cost model of the business cycle is based on nominal rigidities which prevent markets from clearing. Small menu costs introduce dichotomous behavior, where firms find it locally optimal to avoid instantaneous output price adjustments in the face of the cost, but this local optimum results in economy-wide output and employment fluctuations which are much greater in relative magnitude. The small menu cost model of the business cycle is extended and reinterpreted in light of Austrian business cycle theory with heterogeneous, multiply-specific capital, thus providing a rigorous formalization of the Austrian business cycle. The Austrian interpretation of this New Keynesian model fortuitously addresses several of its shortcomings. Copyright Springer Science + Business Media, LLC 2006Austrian business cycle theory, New Keynesian small menu cost model, Hayekian triangle,

show abstract

“…The most notable among these are Keeler (2001), who concludes, that increases in the money supply trigger business cycles; similarly, Mulligan (2002) confirms the working mechanism in reallocation of resources that is in line with ABC theory; furthermore, the same author (2006) using the vector errorcorrection model presents "evidence of cointegration between real consumable output and the cumulative interest rate term spread" (p. 90).…”

mentioning

confidence: 65%

A Discussion of the Main Tenets of Austrian Business Cycle Theory

Metrah¹

2014

EFAJ

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

show abstract

A Hayekian analysis of the term structure of production

Cited by 43 publications

References 4 publications

Austrian business cycle theory: Empirical evidence

Austrian business cycle theory: Empirical evidence

Accounting for the business cycle: Nominal rigidities, factor heterogeneity, and Austrian capital theory

A Discussion of the Main Tenets of Austrian Business Cycle Theory

Contact Info

Product

Resources

About