IDEAS home Printed from https://ideas.repec.org/a/sek/jijoes/v6y2017i1p33-40.html
   My bibliography  Save this article

Strategic Behavior as the Cause of Business Cycles

Author

Listed:
  • Jan Vorlicek

    (College of Business and Law)

  • Klara Cermakova

    (University of Economics in Prague)

Abstract

This paper is aimed to present theory of ?natural strategic cycles? showing that the cyclical development of economic performance (among other causes economic theory has been processed) can be caused also by cyclical evolution of the proportions of various strategies used by different actors in society. We use game theory as theoretical background. The existence of various games gives us an explanation of why there are so many different cycles with different duration. We assume that the theory of strategic cycle can be used to explain e.g. speculative bubble on stock exchange or long-term cycles that are still somehow difficult to grasp.

Suggested Citation

  • Jan Vorlicek & Klara Cermakova, 2017. "Strategic Behavior as the Cause of Business Cycles," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 6(1), pages 33-40, May.
    • Handle: RePEc:sek:jijoes:v:6:y:2017:i:1:p:33-40
    as

    Download full text from publisher

    File URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-1200
    Download Restriction: no
    File URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-1200?download=3
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Finn E. Kydland & Edward C. Prescott, 1990. "Business cycles: real facts and a monetary myth," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 14(Spr), pages 3-18.
    2. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-1370, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Klára Čermáková & Michal Bejček & Jan Vorlíček & Helena Mitwallyová, 2021. "Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations," Data, MDPI, vol. 6(11), pages 1-12, October.
    2. Jiri Rotschedl, 2022. "Study of Intertemporal Discounting According to Income Group, Savings, and Loans," International Journal of Economic Sciences, European Research Center, vol. 11(1), pages 68-84, April.
    3. Arezoo Mohammadi & Mehrzad Minnoei & Zadollah Fathi & Mohamamd Ali Keramati & Hossein Baktiari, 2022. "Optimal allocation of bank resources and risk reduction through portfolio decentralization," International Journal of Economic Sciences, European Research Center, vol. 11(2), pages 92-143, November.
    4. Lubomir Popov & Franklin Goza, 2021. "A Generic Process Model for Sociocultural Data Collection and Decision Making in Facility Programming," International Journal of Social Sciences, European Research Center, vol. 10(2), pages 31-56, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daehaeng Kim & Chul-In Lee, 2007. "On-the-Job Human Capital Accumulation in a Real Business Cycle Model: Implications for Intertemporal Substitution Elasticity and Labor Hoarding," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 494-518, July.
    2. Rodrigo Suescún M., 1995. "Growth, Welfare Costs and Aggregate Fluctuations in Economies with Monetary Taxation," Borradores de Economia 036, Banco de la Republica de Colombia.
    3. C. Emre Alper, 2000. "Stylized Facts of Business Cycles, Excess Volatility and Capital Flows: Evidence from Mexico and Turkey," Working Papers 2000/11, Bogazici University, Department of Economics.
    4. Caraiani, Petre, 2007. "An Analysis of the Fluctuations in the Romanian Economy using the Real Business Cycles Approach," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(2), pages 76-86, June.
    5. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777, March.
    6. Escañuela Romana, Ignacio, 2016. "Azar, Determinismo e Indecidibilidad en la Teoría del Ciclo Económico [Randomness, Determinism and Undecidability in the Business Cycle Theory]," MPRA Paper 72978, University Library of Munich, Germany.
    7. repec:ehu:dfaeii:6767 is not listed on IDEAS
    8. Karras, Georgios & Song, Frank, 1996. "Sources of business-cycle volatility: An exploratory study on a sample of OECD countries," Journal of Macroeconomics, Elsevier, vol. 18(4), pages 621-637.
    9. Cogley, Timothy & Nason, James M., 1995. "Effects of the Hodrick-Prescott filter on trend and difference stationary time series Implications for business cycle research," Journal of Economic Dynamics and Control, Elsevier, vol. 19(1-2), pages 253-278.
    10. Sergio Rebelo, 2005. "Real Business Cycle Models: Past, Present, and Future," NBER Working Papers 11401, National Bureau of Economic Research, Inc.
    11. Luis Eduardo Arango & Mauricio castillo, 1999. "¿ Son Estilizadas las Regularidades del Ciclo Económico? Una Breve Revisión de la literatura," Borradores de Economia 115, Banco de la Republica de Colombia.
    12. King, Robert G & Watson, Mark W, 1996. "Money, Prices, Interest Rates and the Business Cycle," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 35-53, February.
    13. Odia Ndongo, Yves Francis, 2006. "Datation du Cycle du PIB Camerounais entre 1960 et 2003," MPRA Paper 552, University Library of Munich, Germany.
    14. Kwamie Dunbar, 2009. "Stochastic Business Cycle Volatilities, Capital Accumulation and Economic Growth: Lessons from the Global Credit Market Crisis," Working papers 2009-36, University of Connecticut, Department of Economics.
    15. Robert Hart & James Malley & Ulrich Woitek, 2009. "Real earnings and business cycles: new evidence," Empirical Economics, Springer, vol. 37(1), pages 51-71, September.
    16. Korap, Levent, 2010. "A small scaled business-cycle analysis of the Turkish economy: some counter-cyclical evidence using new income series," MPRA Paper 28647, University Library of Munich, Germany.
    17. Gomme, Paul & Greenwood, Jeremy, 1995. "On the cyclical allocation of risk," Journal of Economic Dynamics and Control, Elsevier, vol. 19(1-2), pages 91-124.
    18. Levent, Korap, 2006. "An essay upon the business cycle facts: the Turkish case," MPRA Paper 21717, University Library of Munich, Germany.
    19. Sergio Rebelo, 2005. "Real Business Cycle Models: Past, Present and Future," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(2), pages 217-238, June.
    20. Mossadak, Anas, 2013. "Monetary and Fiscal Policy in an Estimated DSGE Model for Morocco," MPRA Paper 104579, University Library of Munich, Germany, revised 2013.
    21. Giuseppe Catturi, 2022. "L?azienda ? organismo resiliente. Le possibili reazioni alle crisi economiche," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(3), pages 177-202.

    More about this item

    Keywords

    Business cycles; strategic cycles; games theory;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:jijoes:v:6:y:2017:i:1:p:33-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://ijoes.iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.