Dueker, Michael; Fischer, Andreas; Dittmar, Robert - In: The B.E. Journal of Macroeconomics 6 (2007) 3
An unresolved question concerning stochastic depreciation shocks is whether they have to be unrealistically large to have any useful role in a dynamic general equilibrium model economy, as Ambler and Paquet (1994) first suggested. We first consider implied depreciation rates from sectoral data...