Propagation Through Endogenous Investment-Specific Technological Change

Gregory Huffman ()
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Gregory Huffman: Department of Economics, Vanderbilt University

No 223, Vanderbilt University Department of Economics Working Papers from Vanderbilt University Department of Economics

Abstract: Many 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.

Keywords: Fluctuations; propagation; correlation; investment (search for similar items in EconPapers)
JEL-codes: E1 E32 (search for similar items in EconPapers)
Date: 2002-12, Revised 2004-01
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Propagation through endogenous investment-specific technological change (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:van:wpaper:0223

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