Narrow search
Showing 1 - 10 of 7,593
Cover Image
On the Invariance of the Rate of Return to Convex Adjustment Costs
Abel, Andrew B. - 2001
Persistent link: https://www.econbiz.de/10012470066
Cover Image
On the Invariance of the Rate of Return to Convex Adjustment Costs
Abel, Andrew B. - 2001
The Modified Golden Rule, which relates the rate of return on capital and the growth rate of the capital stock along long-run growth paths that maximize the utility of a representative infinitely-lived consumer, is invariant to the introduction of convex capital adjustment costs. Therefore,...
Persistent link: https://www.econbiz.de/10012470081
Cover Image
Idiosyncratic Shocks and the Role of Nonconvexities in Plant and Aggregate Investment Dynamics
Khan, Aubhik - 2007
We study a model of lumpy investment wherein establishments face persistent shocks to common and plant …-specific productivity, and nonconvex adjustment costs lead them to pursue generalized (S,s) investment rules. We allow persistent … the first model consistent with available evidence on establishment-level investment rates. Examining the implications of …
Persistent link: https://www.econbiz.de/10012465811
Cover Image
Interest Rates and Backward-Bending Investment
Chetty, Raj - 2004
This paper studies the effect of interest rates on investment in an environment where firms make irreversible … delaying investment. These two forces combine to generate an aggregate investment demand curve that is always a backward …-bending function of the interest rate. At low rates, increasing the interest rate stimulates investment by raising the cost of delay …
Persistent link: https://www.econbiz.de/10012468339
Cover Image
On the Nature of Capital Adjustment Costs
Cooper, Russell W. - 2000
chosen to reproduce the nonlinear relationship between investment and profitability that we uncover in the plant-level data …
Persistent link: https://www.econbiz.de/10012470812
Cover Image
Estimating Adjustment Costs with Data on Heterogeneous Capital Goods
Goolsbee, Austan - 1997
This paper estimates the micro-level costs of adjusting capital using detailed data on" investment decisions in the US … clear evidence of non-convex adjustment costs inaction for capital investment and quadratic adjustment costs conditional on … positive or negative" investment. The adjustment costs for utilization show similar non-convexities but with smaller …
Persistent link: https://www.econbiz.de/10012472474
Cover Image
Growth theories in light of the East Asian experience
Itō, Takatoshi (ed.); Krueger, Anne O. (contributor) - 1995
Persistent link: https://www.econbiz.de/10013420700
Cover Image
Too Much of a Good Thing? The Economics of Investment in R&D
Jones, Charles I. - 1999
Research and development (R&D) is a key determinant of long run productivity and welfare. A central issue is whether a decentralized economy undertakes too little or too much R&D. We develop an endogenous growth model that incorporates parametrically four important distortions to R&D: the...
Persistent link: https://www.econbiz.de/10012471500
Cover Image
The Stock Market and Capital Accumulation
Hall, Robert E. - 1999
If firms purchase capital up to the point where there is no further marginal benefit, and the firms' securities are equal in value to the capital, then the market value of securities measures the quantity of capital. I explore the implications of this hypothesis using data from U.S. non-farm,...
Persistent link: https://www.econbiz.de/10012471608
Cover Image
Growth, Automation and the Long Run Share of Labor
ⓡ, Debraj Ray - 2020
We provide an argument for long-term automation and decline in the labor income share, driven by capital accumulation rather than technical progress or rising markups. We emphasize a fundamental asymmetry across physical and human capital. An individual can indefinitely replicate her claims on...
Persistent link: https://www.econbiz.de/10012479182