The Macroeconomics Seminar:
Time: 12:15 pm – 13:30 pm
Date: 20 th of June 2022

Room 3001

Dana GALIZIA (Carlton University) “Dynamic Cooper and John Economies: The Role of Coordination Failures and Accumulation in Equilibrium Emergent Phenomena”

Abstract : We study the type of equilibria that emerges when one increases the level of interactions between agents in a dynamic extension of the Cooper & John model. In the model, agents choose an action that accumulates into one or more stocks. The payoff function depends not only on an agent’s own private action and stock(s), but also possibly on the aggregate action. Two features of the payoff function are relevant: how the levels of the private stocks affect the marginal values of private actions; and how aggregate actions impact the marginal values of private actions and stocks (i.e., the nature of strategic interactions). Depending on these properties, we show how interactions can produce hysteresis, limit cycles, and indeterminacy.

Organizers:
Olivier LOISEL (CREST)

Sponsors:
CREST