Investment behavior in dynamic computable general equilibrium models for transition economies

Arbeitspapier

This paper suggests a method of approximating the development of investment in transition economies through an amendment of the standard adjustment cost formulation for investment within dynamic Computable General Equilibrium (CGE) models. Letting adjustment cost depend on the difference between the investment levels of two periods (rather than only on the gross investment ratio) leads to an investment behavior of the representative household that resembles the observed time paths of investment in transition countries. In contrast to standard adjustment costs, which predict a sharp rise in investment due to the high marginal productivity of each unit of capital after a capital shock, augmented adjustment costs lead to a gradual rise in investment.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Year: 1998 ; Kiel: Institut für Weltwirtschaft (IfW)

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Computable and Other Applied General Equilibrium Models ; Socialist Systems and Transitional Economies: General
• Thema: Computable General Equilibrium Model ; Transition ; Adjustment Costs ; Investment Behavior ; Dynamisches Gleichgewicht ; Anpassungskosten ; Investition ; Osteuropa

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Piazolo, Daniel
• Ereignis: Veröffentlichung
• (wer): Kiel Institute of World Economics (IfW) ; ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (wo): Kiel
• (wann): 1998

Weitere Informationen

• Handle: http://hdl.handle.net/10419/46804
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ