The Uncertainty Multiplier and Business Cycles

Preprint, External research report English OPEN
Hikaru Saijo;
(2013)
  • Publisher: UTokyo Price Project
  • Journal: JSPS Grants-in-Aid for Scientific Research (S) Understanding Persistent Deflation in Japan Working Paper Series,volume 32

I study a business cycle model where agents learn about the state of the economy by accumulating capital. During recessions, agents invest less, and this generates noisier estimates of macroeconomic conditions and an increase in uncertainty. The endogenous increase in a... View more
  • References (41)
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