Sentiment-driven business cycle dynamics: An elementary macroeconomic model with animal spirits

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F23%3A10252793" target="_blank" >RIV/61989100:27510/23:10252793 - isvavai.cz</a>
Result on the web
<a href="https://www.sciencedirect.com/science/article/pii/S0167268123001166?via%3Dihub" target="_blank" >https://www.sciencedirect.com/science/article/pii/S0167268123001166?via%3Dihub</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.jebo.2023.04.012" target="_blank" >10.1016/j.jebo.2023.04.012</a>

Result language
angličtina
Original language name
Sentiment-driven business cycle dynamics: An elementary macroeconomic model with animal spirits
Original language description
We propose an elementary macroeconomic model with animal spirits in which aggregate investment expenditure depends on firms' sentiment. Firms display one of three sentiment states. When national income increases (decreases) strongly, firms are optimistic (pessimistic) and aggregate investment expenditure is high (low). Otherwise, firms are neutral and aggregate investment expenditure is normal. A rigorous mathematical analysis of our elementary macroeconomic model sheds new light on how animal spirits may contribute to fluctuations in economic activity. In particular, we show that a bidirectional feedback process between national income and investor sentiment may create endogenous business cycles that coevolve with waves of optimism and pessimism.(c) 2023 Elsevier B.V. All rights reserved.
Czech name
—
Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50200 - Economics and Business

Project
<a href="/en/project/GA23-06282S" target="_blank" >GA23-06282S: Evolutionary economic dynamics with finite populations: Modeling and applications</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year
2023
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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