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DELAYED RESPONSE TO SHOCKS IN THE NEO‐AUSTRIAN MODEL: CHARACTERISTICS OF THE TRAVERSE PATH
Author(s) -
Nardini Franco
Publication year - 1994
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1994.tb00011.x
Subject(s) - traverse , economics , lag , investment (military) , path (computing) , production (economics) , wage , monetary economics , lag time , time lag , econometrics , macroeconomics , keynesian economics , labour economics , computer science , geography , political science , geodesy , computer network , politics , law , programming language , biology , biological system
We analyse the traverse path following either the introduction of a more profitable production technique or a rise in the wage rate on the assumption that investment depends, with a time lag, on the activity level of the economic system. We compare this case with the previously studied cases of an immediate reaction and, the opposite situation, an absence of reaction. We conclude by examining the case in which only some entrepreneurs are innovators.