History Versus Expectations Export

@article{krugman91, abstract = {In models with external economies, there are often two or more long-run equilibria. Which equilibrium is chosen? Much of the literature presumes that \"history\" sets initial conditions that determine the outcome, but an alternative view stresses the role of \"expectations,\" i.e., of self-fulfilling prophecy. This paper uses a simple trade model with both external economies and adjustment costs to show how the parameters of the economy determine the relative importance of history and expectations in determining equilibrium.}, author = {Krugman, Paul}, citeulike-article-id = {949867}, citeulike-linkout-0 = {http://dx.doi.org/10.2307/2937950}, citeulike-linkout-1 = {http://www.jstor.org/stable/2937950}, doi = {10.2307/2937950}, journal = {The Quarterly Journal of Economics}, keywords = {economics, evolution, geography}, number = {2}, pages = {651--667}, posted-at = {2008-10-28 12:47:10}, priority = {2}, title = {History Versus Expectations}, url = {http://dx.doi.org/10.2307/2937950}, volume = {106}, year = {1991} }

TY - JOUR ID - krugman91 L3 - citeulike-article-id:949867 N2 - In models with external economies, there are often two or more long-run equilibria. Which equilibrium is chosen? Much of the literature presumes that "history" sets initial conditions that determine the outcome, but an alternative view stresses the role of "expectations," i.e., of self-fulfilling prophecy. This paper uses a simple trade model with both external economies and adjustment costs to show how the parameters of the economy determine the relative importance of history and expectations in determining equilibrium. IS - 2 JF - The Quarterly Journal of Economics EP - 667 TI - History Versus Expectations VL - 106 SP - 651 KW - economics KW - evolution KW - geography AU - Krugman, Paul PY - 1991/// UR - http://dx.doi.org/10.2307/2937950 ER -