Gomme, Paul; Kydland, Finn E.; Rupert, Peter - In: Journal of Political Economy 109 (2001) 5, pp. 1115-1131
An innovation in this paper is to introduce a time-to-build technology for the production of market capital into a model with home production. Our main finding is that the two anomalies that have plagued all household production modelsthe positive correlation between business and household...