Arbeitspapier
Expectations and adjustment dynamics in a two-sector model of a small open economy
This paper generalizes the analysis in Albert (1989) and Meckl (1990) of adjustment in a dynamic specific-factors model with endogenous capital stocks. Capital reallocation and accumulation are consequences of investment decisions and depreciation. The Investment process is analyzed under a spectrum of expectations which include rational, adaptive, and static expectations as special cases. Only with rational expectations the speed of adjustment is optimal; adjustment is too fast if expectations are biased towards the status quo, and too slow if expectations are biased towards long-run values. Local and global analysis of the adjustment path show sharp qualitative differences. Non-monotonic adjustment of capital stocks and the social product is possible and is not necessarily the result of expectational errors.
- Sprache
-
Englisch
- Erschienen in
-
Series: Diskussionsbeiträge - Serie II ; No. 132
- Klassifikation
-
Wirtschaft
- Thema
-
Erwartungstheorie
Wirtschaftliche Anpassung
Offene Volkswirtschaft
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Albert, Max
Meckl, Jürgen
- Ereignis
-
Veröffentlichung
- (wer)
-
Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
- (wo)
-
Konstanz
- (wann)
-
1991
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Albert, Max
- Meckl, Jürgen
- Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
Entstanden
- 1991
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