archive of the former site EconWPA.wustl.edu

Please do not link or reference this page. Use one of the following URLs:
econpapers.repec.org as http://econpapers.repec.org/paper/wpawuwpma/0004020.htm
ideas.repec.org as http://ideas.repec.org/p/wpa/wuwpma/0004020.html

Local Interactions and Global Persistence

Paper:ewp-mac/0004020
From:    
Date: Mon, 24 Jul 2000 00:19:47 -0500

Title: Local Interactions and Global Persistence
Author: Nienke A. Oomes(University of Wisconsin-Madison)
Contact:
Comments: Type of Document - PDF; prepared on PC; to print on HP; pages: 35 ; figures: included
Keywords: game-theory evolution persistence inequality local interactions unemployment Keynes externalities
JEL: C63 C70 C73 E12 E24 J23 R1
EWPA-references:
Report-no: NAO-00-1

Abstract:

This paper studies the effects of local interactions on the distribution of employment in a Keynesian-type model with strategic complementarities. It is shown that rational expectations generate symmetric equilibria for any interaction structure except autarky. Under adaptive expectations, the distribution of employment converges to a rational expectations equilibrium, implying that asymmetric equilibria, or inequality, cannot persist in the long run. On the basis of both analytical and computational results, however, it is shown that symmetric equilibria are unstable in the sense that, in the presence of noise, local interactions can produce globally persistent inequality.

Acrobat pdf files:(viewing .pdf) archive: 0004020.pdf is 1022375 bytes, 6-24-100, or 0004020.pdf.gz
Access statistics for this paper at LogEc which is a part of the RePEc project as was/is EconWPA.
Translate to another language with babel.altavista.com EconWPA reference ewp-mac/0004020
RePEc reference RePEc:wpa:wuwpma:0004020 send e-mail to

EconWPA began as a conversation between Bob Parks and Larry Blume on January 28, 1993. I located Paul Ginsparg's archive (then xxx.lanl.gov) and he graciously installed his software on a Sun Sparc system which was supporting the department of economics email and computation. EconWPA began accepting papers July 1, 1993 and had ftp, email, gopher and web interfaces. The web interface for submissions was engineered into existence in July 1995. A complete and catastrophic machine failure in 1999 caused the loss of EconWPA's email new paper announcment service at which time there were over 15,000 subscriptions with over 8,000 unique email addresses.

In 2005, Arts and Sciences commandeered the computing services that I had provided to the Department of Economics since 1987. Some might say that the department was sold out, others would (erroneously) claim that centralization is efficient, and still others would claim that I have few marketing skills.

I was told that I could keep operating EconWPA (as well as many other services including rfe.wustl.edu, barnett.wustl.edu, and three RePEc servers) but I would receive no support (hardware, software, or anthing else) and (as had been the case) no compensation. At that point, given the apparent low valuation of my activities by the department, and university, it made no sense for me to continue operating EconWPA or other services.

Thanks to all who have supported EconWPA in the past.

A Chinese curse states May you live in intersting times. I have. Bob Parks - Jan 2006