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Two Cheers for the Aggregated (S, s) Model!

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  • Richard W P Holt

Abstract

Aggregated (S;s) models purport to provide a structural, microfounded and statistically robust explanation of aggregate investment uctuations. In this paper I analyse these claims, present several empirical puzzles ari ng from the model and discuss hoe the model might be extended to account for these puzzles.

Suggested Citation

  • Richard W P Holt, 2000. "Two Cheers for the Aggregated (S, s) Model!," Edinburgh School of Economics Discussion Paper Series 56, Edinburgh School of Economics, University of Edinburgh.
  • Handle: RePEc:edn:esedps:56
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    File URL: http://www.econ.ed.ac.uk/papers/id56_esedps.pdf
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    References listed on IDEAS

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    8. Ricardo J. Caballero & Eduardo M. R. A. Engel & John C. Haltiwanger, 1995. "Plant-Level Adjustment and Aggregate Investment Dynamics," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(2), pages 1-54.
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    More about this item

    Keywords

    economic fluctuations; investment; factor demand; aggregated (S; s) rules; model specification;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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