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Sectoral Shocks, Learning, and Aggregate Fluctuations

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Author Info
Caplin, Andrew
Leahy, John V

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Abstract

The authors present a model in which sectoral shocks have aggregate consequences. The model relies on irreversible investment and imperfect information to slow the adjustment of expanding industries. The authors show that this gradual expansion is suboptimal. Copyright 1993 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 60 (1993)
Issue (Month): 4 (October)
Pages: 777-94
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Handle: RePEc:bla:restud:v:60:y:1993:i:4:p:777-94

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