Propagation Through Endogenous Investment-Specific Technological Change
AbstractMany real business cycle models lack a significant propagation mechanism. Consequently most of the serial correlation in output is inherited from the serial correlation in the exogenous shocks. A simple model is presented to show there need not be any relationship between the serial correlation of the exogenous shocks, and that of output. This is accomplished by incorporating the well-documented fact that research spending has generated changes in the real price of capital.
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Bibliographic InfoPaper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 0223.
Date of creation: Dec 2002
Date of revision: Jan 2004
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Web page: http://www.vanderbilt.edu/econ/wparchive/index.html
Fluctuations; propagation; correlation; investment;
Other versions of this item:
- Huffman, Gregory W., 2004. "Propagation through endogenous investment-specific technological change," Economics Letters, Elsevier, vol. 84(2), pages 191-197, August.
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
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