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mechanism to explain the observed persistent comovements between housing prices and business investment. We develop such a …
Persistent link: https://www.econbiz.de/10010292216
I consider a real business cycle model in which agents have private information about an idiosyncratic shock to their value of leisure. I consider the mechanism design problem for this economy and describe a computational method to solve it. This is an important contribution of the paper since...
Persistent link: https://www.econbiz.de/10011460676
Economists typically make simplifying assumptions to make the solution and estimation of their highly complex models feasible. These simplifications include approximating the true nonlinear dynamics of the model, disregarding aggregate uncertainty or assuming that all agents are identical. While...
Persistent link: https://www.econbiz.de/10013479448
This paper establishes a dynamic stochastic partial equilibrium model for explaining residential investment dynamics in … the United States, focusing on the distinctive cyclical features of residential investment in that it leads the whole … that these assumptions are essential to generating the dynamic pattern in which residential investment leads consumption …
Persistent link: https://www.econbiz.de/10010892138
We argue that positive comovements between land prices and business investment are a driving force behind the broad … joint dynamics of land prices and business investment. …
Persistent link: https://www.econbiz.de/10010292308
This paper surveys the literature on the linkages between asset prices and macroeconomic outcomes. It focuses on three major questions. First, what are the basic theoretical linkages between asset prices and macroeconomic outcomes? Second, what is the empirical evidence supporting these...
Persistent link: https://www.econbiz.de/10012060200
persistent decline in investment. Moreover, the territorial dispute has led to persistent pessimism in these firms' expectations … about future sales, which can explain 60% of the overall decline in investment. …
Persistent link: https://www.econbiz.de/10011928005
Across the world, a structural growth slowdown is underway: at current trends, the global potential growth rate - the maximum rate at which an economy can grow without igniting inflation - is expected to fall to a three-decade low over the remainder of the 2020s. The slowdown could be even more...
Persistent link: https://www.econbiz.de/10014540975
investment. Kaleckian-Robinsonian models postulate an investment function dependent on the accelerator and profitability. Some of …. For their part, Kaldorian models place the emphasis on the accelerator. More important, investment is a derived demand … positively related to growth, investment, and capacity utilization. It also highlights the role of finance in sustaining …
Persistent link: https://www.econbiz.de/10010513026
productivity and investment, which are linked to long-run growth. East Asia's and the Pacific's cumulative gain in labor … that the effects of the contraction in public investment surpass those of the expansion, leading to a declining trend over …
Persistent link: https://www.econbiz.de/10010318643