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Export Reference (APA) 
Gomes, O. (2008). Imperfect demand expectations and endogenous business cycles . Zagreb International Review of Economics and Business. 11 (1), 37-59
Export Reference (IEEE) 
O. M. Gomes,  "Imperfect demand expectations and endogenous business cycles ", in Zagreb Int. Review of Economics and Business, vol. 11, no. 1, pp. 37-59, 2008
Export BibTeX 
@article{gomes2008_1715937101912,
	author = "Gomes, O.",
	title = "Imperfect demand expectations and endogenous business cycles ",
	journal = "Zagreb International Review of Economics and Business",
	year = "2008",
	volume = "11",
	number = "1",
	pages = "37-59",
	url = "https://hrcak.srce.hr/"
}
Export RIS 
TY  - JOUR
TI  - Imperfect demand expectations and endogenous business cycles 
T2  - Zagreb International Review of Economics and Business
VL  - 11
IS  - 1
AU  - Gomes, O.
PY  - 2008
SP  - 37-59
SN  - 1331-5609
UR  - https://hrcak.srce.hr/
AB  - Optimal growth models aim at explaining long run trends of growth under the strong
assumption of full efficiency in the allocation of resources. As a result, the steady state time
paths of the main economic aggregates reflect constant, exogenous or endogenous, growth.
To introduce business cycles in this optimality structure one has to consider some source of
inefficiency. By assuming that firms adopt a simple non optimal rule to predict future
demand, we let investment decisions to depart from the ones that would guarantee the total
efficiency outcome. The new investment hypothesis is considered under three growth setups
(the simple one equation Solow model of capital accumulation, the Ramsey model with
consumption utility maximization, and a two sector endogenous growth scenario); for each
one of the models, we find that endogenous business cycles of various orders (regular and
irregular) are observable.
ER  -