English, Article edition: Determinacy Through Intertemporal Adjustment Costs Berthold Herrendorf; Akos Valentinyi

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/112825
Physical Description
  • article
Language
  • English

Edition details

Title
  • Determinacy Through Intertemporal Adjustment Costs
Author
  • Berthold Herrendorf
  • Akos Valentinyi
Physical Description
  • article
Notes
  • It is well known that if there are mild sector-specific externalities, then the steady state of the standard two-sector real business cycle model can become indeterminate and endogenous business cycles can arise. We show that this result is not robust to the introduction of standard intertemporal capital adjustment costs, which may accrue when total capital is adjusted or when each sector's capital is adjusted. We find for both forms of adjustments costs that the steady state is determinate for all empirically plausible parameter values. We also find that determinacy occurs for a much larger range of parameter values when adjusting each sector's capital is costly. (Copyright: Elsevier)
  • capital adjustment costs, determinacy, indeterminacy, local stability, sector-specific externality.
  • RePEc:red:issued:v:6:y:2003:i:3:p:483-497
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment