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Real Business Cycles with Capital Maintenance

Albonico, Alice; Kalyvitis, Sarantis; Pappa, Evi - 2011

We develop a stochastic general equilibrium model in which maintenance endogenously affects the capital depreciation … the short run. We use Bayesian estimation to obtain the time profile of equipment capital depreciation in Canadian … manufacturing. The depreciation rate has been quite volatile and procyclical over the last 50 years. …

Persistent link: https://www.econbiz.de/10010343861

An RBC model with Epstein-Zin (non-expected-utility) recursive preferences : lessons from Bulgaria (1999-2016)

Vasilev, Aleksandar - 2018

propagation of cyclical fluctuations in Bulgaria. Allowing for Epstein-Zin preferences improves the model performance against data …

Persistent link: https://www.econbiz.de/10011933706

Computerizing Households and the Role of Investment-Specific Productivity in Business Cycles

Na, Seunghoon; Oh, Hyunseung - 2020

Advancements in computer technology have reshaped not only business operations but also household consumption. We estimate a business-cycle model disaggregating consumer IT and non-IT durable goods from the capital stock. We find that shocks to the supply of IT durables account for more than...

Persistent link: https://www.econbiz.de/10014048821

Business Fluctuations and Leverage in the Collateral Constraints

Nah, Won Jun - 2015

This paper develops a simple model with collateralized borrowing constraints to explore the business cycle implications of financial leverage. The degree of leverage is shown to be an important factor in the amplifying role of collateral constraints, suggesting that the financial vulnerability...

Persistent link: https://www.econbiz.de/10013039013

Inequality Causes Recessions : A Fallout from Ramsey's Conjecture

Bélanger, Gilles - 2016

I show how the mechanisms of debt relief, redistribution and the uncertainty related to them could boil down to a discount rate shock for an aggregate representative agent. The mechanism hails from Ramsey's conjecture and the relationship between debt relief and the probability of repayment. To...

Persistent link: https://www.econbiz.de/10012984458

Entry decision, the Option to Delay Entry, and Business Cycles

Vardishvili, ia - 2023

I show that firms' ability to postpone entry has important implications for our understanding of the observed business cycle behavior of start-ups. I use a model that closely replicates the main features of the US firm dynamics to explore and quantify the mechanism. I find that the option to...

Persistent link: https://www.econbiz.de/10014350961

Business cycle accounting : Bulgaria after the introduction of the currency board arrangement (1999-2014)

Vasilev, Aleksandar - 2016

This paper focuses on explaining the economic fluctuations in Bulgaria after the introduction of the currency board … financial crisis. This paper follows Chari et al. (2002) and performs business cycle accounting (BCA) for Bulgaria during the … capita in Bulgaria over the period is due to variations in the efficiency and labor wedges. …

Persistent link: https://www.econbiz.de/10011520593

Business cycle accounting : Bulgaria after the introduction of the currency board arrangement (1999-2014)

Vasilev, Aleksandar - 2017

This paper focuses on explaining the economic fluctuations in Bulgaria after the introduction of the currency board … financial crisis. This paper follows Chari et al. (2002, 2007) and performs business cycle accounting (BCA) for Bulgaria during … output per capita in Bulgaria over the period is due to variations in the efficiency and labor wedges. …

Persistent link: https://www.econbiz.de/10011642592

On Identification Issues in Business Cycle Accounting Models

Loria, Francesca; Brinca, Pedro; Iskrev, Nikolay I. - 2021

Since its introduction by Chari et al. (2007), Business Cycle Accounting (BCA) exercises have become widespread. Much attention has been devoted to the results of such exercises and to methodological departures from the baseline methodology. Little attention has been paid to identification...

Persistent link: https://www.econbiz.de/10013310086

Putty-Clay and Investment : A Business Cycle Analysis

Gilchrist, Simon; Williams, John C. - 1998

This paper develops a dynamic stochastic general equilibrium model with putty-clay technology that incorporates embodied technology, investment irreversibility, and variable capacity utilization. Low short-run capital-labor substitutability native to the putty-clay framework induces the...

Persistent link: https://www.econbiz.de/10014217959