Nonconvex Factor Adjustments in Equilibrium Business Cycle Models: Do Nonlinearities Matter?
Aubhik Khan () and
No 2000-E33, GSIA Working Papers from Carnegie Mellon University, Tepper School of Business
Using an equilibrium business cycle model, we search for agregate nonlinearities arising from the introduction of nonconvex capital adjustment costs. We find that, while such adjustment costs lead to nontrivial nonlinearities in aggregate investment demand, equilibrium investment is effectively unchanged. Our finding, based on a model where aggregate fluctuations arise through exogenous changes in total factor productivity, is robust to the introduction of shocks to the relative price of investment goods.
New Economics Papers: this item is included in nep-dge
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.tepper.cmu.edu/andrew/jkt/www/KhanThomasAug00.pdf [301 Moved Permanently]--> https://tepper.cmu.edu/andrew/jkt/www/KhanThomasAug00.pdf)
Journal Article: Nonconvex factor adjustments in equilibrium business cycle models: do nonlinearities matter? (2003)
Working Paper: Nonconvex factor adjustments in equilibrium business cycle models: Do nonlinearities matter? (2002)
Working Paper: Nonconvex factor adjustments in equilibrium business cycle models: do nonlinearities matter? (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cmu:gsiawp:401
Ordering information: This working paper can be ordered from
http://student-3k.te ... /gsiadoc/GSIA_WP.asp
Access Statistics for this paper
More papers in GSIA Working Papers from Carnegie Mellon University, Tepper School of Business Tepper School of Business, Carnegie Mellon University, 5000 Forbes Avenue, Pittsburgh, PA 15213-3890.
Bibliographic data for series maintained by Steve Spear ().