Maccini, Louis J.; Moore, Bartholomew J.; Schaller, Huntley - In: American Economic Review 94 (2004) 5, pp. 1303-1327
This paper presents a model that provides an explanation, based on regime switching in the real interest rate and learning, of why tests based on stock adjustment models, Euler equations, or decision rules—which emphasize short-run fluctuations in inventories and the interest rate—are...