Investment, Capacity, and Uncertainty: A Putty-Clay Approach

Simon Gilchrist and John Williams

Review of Economic Dynamics, 2005, vol. 8, issue 1, 1-27

Abstract: This paper introduces Heckscher-Ohlin trade features into a two-country dynamic stochastic general equilibrium model, and studies the international transmission of productivity shocks through trade in goods. This framework improves upon existing international real business cycle models in that it generates business cycle properties comparable with the empirical evidence regarding the terms of trade and the trade balance. (Copyright: Elsevier)

Keywords: vintage capital; irreversibility; capacity utilization; productivity (search for similar items in EconPapers)
JEL-codes: E32 F11 F32 F41 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (42)

Downloads: (external link)
http://dx.doi.org/10.1016/j.red.2004.06.002 Full text (application/pdf)
Access to full texts is restricted to ScienceDirect subscribers and ScienceDirect institutional members. See http://www.sciencedirect.com/ for details.

Related works:
Working Paper: Investment, Capacity, and Uncertainty: A Putty-Clay Approach (2004)
Working Paper: Investment, capacity, and uncertainty: a putty-clay approach (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:issued:v:8:y:2005:i:1:p:1-27

Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/

DOI: 10.1016/j.red.2004.06.002

Access Statistics for this article

Review of Economic Dynamics is currently edited by Loukas Karabarbounis

More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().