Arbeitspapier
Lumpy investment and state-dependent pricing in general equilibriumi
The lumpy nature of plant-level investment is generally not taken into account in the context of monetary theory (see, e.g., Christiano et al. 2005 and Woodford 2005). We formulate a generalized (S,s) pricing and investment model which is empirically more plausible along that dimension. Surprisingly, our main result shows that the presence of lumpy investment casts doubt on the ability of sticky prices to imply a quantitatively relevant monetary transmission mechanism.
- Language
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Englisch
- Bibliographic citation
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Series: Reihe Ökonomie / Economics Series ; No. 239
- Classification
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Wirtschaft
Investment; Capital; Intangible Capital; Capacity
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
- Subject
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lumpy investment
sticky prices
Gesamtwirtschaftliche Investitionstheorie
Staatliche Preispolitik
Preisrigidität
Allgemeines Gleichgewicht
Theorie
- Event
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Geistige Schöpfung
- (who)
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Reiter, Michael
Sveen, Tommy
Weinke, Lutz
- Event
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Veröffentlichung
- (who)
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Institute for Advanced Studies (IHS)
- (where)
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Vienna
- (when)
-
2009
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Reiter, Michael
- Sveen, Tommy
- Weinke, Lutz
- Institute for Advanced Studies (IHS)
Time of origin
- 2009
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