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The Social Cost of Near-Rational Investment

  • Thomas M. Mertens

    (NYU Stern School of Business)

  • Tarek A. Hassan

    (Chicago Booth School of Business)

run level of capital accumulation. Through its effect on capital accumulation excess volatility causes costly (fi rst-order) distortions in the long-run level of consumption.

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Paper provided by Society for Economic Dynamics in its series 2010 Meeting Papers with number 370.

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Date of creation: 2010
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Handle: RePEc:red:sed010:370
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

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