Similar Search Results

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

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

Financial frictions, trends, and the great recession

Guerrón-Quintana, Pablo A.; Jinnai, Ryo - In: Quantitative economics : QE ; journal of the … 10 (2019) 2, pp. 735-773

We study the causes behind the shift in the level of U.S. GDP following the Great Recession. To this end, we propose a model featuring endogenous productivity à la Romer and a financial friction à la Kiyotaki–Moore. Adverse financial disturbances during the recession and the lack of strong...

Persistent link: https://www.econbiz.de/10012049309

New Perspectives on Depreciation Shocks as a Source of Business Cycle Fluctuations

Seneca, Martin - 2011

In this paper we study the transmission for capital depreciation shocks. The existing literature in the Real Business …

Persistent link: https://www.econbiz.de/10013124916

Wars as Large Depreciation Shocks

Auray, Stéphane - 2014

do -- by assuming an (exogenously) time-varying depreciation rate of the stock of capital. In addition, the model imbeds … model is estimated and used (i) to assess the importance of depreciation shocks during war episodes, and (ii) to quantify … the welfare effects of conflicts. We show that depreciation shocks are crucial to account for the macroeconomic dynamics …

Persistent link: https://www.econbiz.de/10013060507

Investment Shocks, Capacity Utilization, and Endogenous Entries

Jinnai, Ryo - 2014

This paper studies a model that includes investment-specific technological shocks, a variable capacity utilization rate, and endogenous product entry subject to sunk product development costs. These factors constitute a powerful amplification mechanism as they interact with each other. The model...

Persistent link: https://www.econbiz.de/10013055340

Models of Sectoral Reallocation

Swanson, Eric T. - 1999

This paper demonstrates several strengths and shortcomings of models of sectoral reallocation. Although such models demonstrate that sectoral reallocation can be an important amplification and propagation mechanism for exogenous shocks, they are essentially unable to explain any effects of...

Persistent link: https://www.econbiz.de/10014198038

Issues on the Measurement of the Solow Residual and the Testing of its Exogeneity : A Tale of Two Countries

Paquet, Alain; Robidoux, Benoit - 1998

Using aggregate U.S. and Canadian data, this paper examines the implications for the empirical assessment of market structure and exogeneity of productivity shocks of correcting the Solow residual for variation in capacity utilization. In contrast to most studies, not accounting for capacity...

Persistent link: https://www.econbiz.de/10014089031

Business Cycle Accounting : How Important are Technology Shocks as a Propagation Mechanism? Some New Evidence from Japan

Chakraborty, Suparna - 2006

This paper investigates the role of technology shocks as a propagation mechanism for business cycles using the new technique of business cycle accounting (BCA) and some new evidence from Japan. BCA technique enables us to model the economy as a standard growth model, but extends it to allow...

Persistent link: https://www.econbiz.de/10014055988

The banking crisis as dynamic stochastic general equilibrium ; what's wrong with modern macroeconomics?

Minford, Patrick - In: CESifo economic studies : CESifo, a joint initiative of … 56 (2010) 4, pp. 554-574

Crises are triggered by the inherent uncertainty of the capitalist system. We represent this uncertainty in an open economy real business cycle model of the UK by including non-stationary productivity shocks. A random sequence of good or bad shocks will accumulate, producing euphorias and...

Persistent link: https://www.econbiz.de/10008809501

1
2
3
4
5
6
7
8
9
10
Next
Last