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Economic hysteresis and the effects of output regulation



Economic hysteresis and the effects of output regulation



Journal of Agricultural and Resource Economics 21(1): 1-17



Economic hysteresis, the continuation of a phenomenon after its initial cause has disappeared, represents an alternative theoretical explanation for the fixed-asset problem. When a set of fixed assets includes quota licenses, hysteresis in license investment leads to distortions that have not been measured in the policy analysis literature. A model of economic 'friction' tests the effect of hysteresis in dairy farm investment in Alberta, Canada.

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Accession: 002808526

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DOI: 10.2307/40986893



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