Time to build and aggregate fluctuations: A reconsideration
β Scribed by K.Geert Rouwenhorst
- Book ID
- 113312016
- Publisher
- Elsevier Science
- Year
- 1991
- Tongue
- English
- Weight
- 838 KB
- Volume
- 27
- Category
- Article
- ISSN
- 0304-3932
No coin nor oath required. For personal study only.
π SIMILAR VOLUMES
In this paper, we slightly modify the canonical RBC model by adding an implementation lag in the technology, to reproduce the fact that consumption is a leading indicator of output. Indeed, we assume that agents have today some information on the realization of the technology shock that will occur t
We analyze the dynamics of a simple growth model in which production occurs with a delay while new capital is installed (time-to-build). The time-to-build technology is shown to yield a system of functional (delay) di!erential equations with a unique steady state. We demonstrate that the steady stat