EconPapers    
Economics at your fingertips  
 

Implementation Cycles in the New Economy

Pasquale Scaramozzino, Jonathan Temple () and Nir Vulkan

No 5032, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The economic boom of the USA in the 1990s was remarkable in its duration, the sustained rise in equipment investment, the reduced volatility of productivity growth, and continued uncertainty about the trend growth rate. In this paper we link these phenomena using an extension of the classic model of implementation cycles due to Shleifer (1986). The key idea is that uncertainty about the trend growth rate can lead firms to bring forward the implementation of innovations, temporarily eliminating expectations-driven business cycles, because delay is risky when beliefs are not common knowledge.

Keywords: implementation cycles; multiple equilibria; New Economy (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
Date: 2005-05
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 (2) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=5032 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Implementation Cycles in the New Economy (2005) Downloads
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:cpr:ceprdp:5032

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=5032

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2021-01-22
Handle: RePEc:cpr:ceprdp:5032