Lumpy Investment in Sticky Information General Equilibrium
نویسندگان
چکیده
منابع مشابه
Lumpy Investment and State-dependent Pricing in General Equilibrium Lumpy Investment and State-dependent Pricing in General Equilibrium
What are the aggregate consequences of microeconomic lumpy decisions? This is by now a classical question. Most existing general equilibrium analyses focus, however, on one single decision at a time. In the present paper we analyze simultaneous (S,s) pricing and investment decisions. Surprisingly, equilibrium dynamics are similar to what they would be in the absence of restrictions on price or ...
متن کاملSticky Information in General Equilibrium
This paper develops and analyzes a general-equilibrium model with sticky information. The only rigidity in goods, labor, and financial markets is that agents are inattentive, sporadically updating their information sets, when setting prices, wages, and consumption. After presenting the ingredients of such a model, the paper develops an algorithm to solve this class of models and uses it to stud...
متن کاملLUMPY INVESTMENT IN DYNAMIC GENERAL EQUILIBRIUM Ruediger Bachmann
Microeconomic lumpiness matters for macroeconomics. According to our DSGE model, it explains roughly 60% of the smoothing in the investment response to aggregate shocks. The remaining 40% is explained by general equilibrium forces. The central role played by micro frictions for aggregate dynamics results in important history dependence in business cycles. In particular, booms feed into themselv...
متن کاملUnderstanding Investment Irreversibility in General Equilibrium
In general equilibrium, irreversibility a ects both the wealth of consumers and the return on assets. As long as the inter-temporal elasticity of substitution is realistically low, irreversibility not only prevents capital destruction, but it also induces capital creation. Furthermore, under certain conditions, irreversibility raises the risk premium by increasing the variability of consumption...
متن کاملOptimal Investment with Lumpy Costs
In this paper we analyze a continuous-time model of investment with uncertainty, irreversibility and a broad class of lumpy adjustment costs. We show that the two components of the optimal investment strategy, the investment trigger and the investment increment, can be found sequentially, and that the optimal investment increment maximizes a closed form function. Solving the model numerically, ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2013
ISSN: 1556-5068
DOI: 10.2139/ssrn.2330811