On stabilization policy in sunspot-driven oligopolistic economies
type: Dataset
description: Economies with oligopolistic markets are prone to inefficient sunspot fluctuations triggered by autonomous changes in firms equilibrium conjectures. We show that a well designed taxation-subsidization scheme can eliminate these fluctuations by coordinating firms in each sector on a single efficient equilibrium. At the macroeconomic level, implementing this stabilization policy leads to significant welfare gains, attributable to a quantitatively dominant "efficient stabilization effect". This effect, while important, is typically ignored in the traditional computations of the welfare costs of aggregate fluctuations (e.g., Lucas, 2003).
issued: 2026-05-14T10:50:34.086426
language: en
modified: 2026-05-14T10:50:34.086432
contact point: Organization
  fn: CCSD
keyword: business-cycles
keyword: indeterminacy
keyword: infoeu-reposemanticspreprint
keyword: jel-e---macroeconomics-and-monetary-economicsee3---prices-business-fluctuations-and-cycles
keyword: jel-e---macroeconomics-and-monetary-economicsee3---prices-business-fluctuations-and-cyclesee3
keyword: oligopolistic-competition
keyword: preprints-working-papers-
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
keyword: stabilization-policy
keyword: sunspot-equilibria
landing page: https://hal.science/hal-00789233

On stabilization policy in sunspot-driven oligopolistic economies
type: Distribution
format: HTML
issued: 2026-05-14T10:50:34.138940
modified: 2026-05-14T10:50:34.008659
access URL: https://hal.science/hal-00789233

test_moissonnage_selune
type: Agent