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ralph lauren polo

Joao Ricardo Faria
''Small departures from rationality magnify fluctuations''
( 2004, Vol. 5 No.5 )
This note shows that introducing into the economy a few number of agents who do not support sunspots theories magnifies endogenous business cycles fluctuations when the current state of the economic system is sensitive enough to traders' forecasts, or equivalently, in presence of indeterminacy.
JEL: E3 - Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Manuscript Received : Feb 18 2004 Manuscript Accepted : Feb 18 2004

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