Real rigidities, productivity improvements and investment dynamics
| Autor: | Massimiliano Tancioni, Francesco Giuli |
|---|---|
| Přispěvatelé: | Giuli, Francesco, Tancioni, M. |
| Jazyk: | angličtina |
| Rok vydání: | 2012 |
| Předmět: |
Macroeconomics
Economics and Econometrics Control and Optimization investment dynamics bayesian inference Technology shock technology shocks Applied Mathematics firm-specific capital nk-dsge model Investment (macroeconomics) Real rigidity Capital (economics) New Keynesian economics Dynamic stochastic general equilibrium Economics Business cycle Productivity |
| Popis: | The theoretical literature on business cycles predicts a positive investment response to productivity improvements, a prediction we question from theoretical and empirical perspectives. We show that a short-term negative response of investment to a positive technology shock is consistent with a reasonably parameterized new Keynesian dynamic stochastic general equilibrium (DSGE) model in which firm-specific capital introduces an additional real rigidity, and monetary policy is not fully accommodative. Employing Bayesian techniques, we provide evidence that permanent productivity improvements have short-term, contractionary effects on investment. Although this result can be obtained from both firm-specific and rental capital models, only in the case of the former is the average price duration in line with the microeconometric evidence. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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