|
Titill:
|
Investment-specific technology shocks and consumptionInvestment-specific technology shocks and consumption |
|
Höfundur:
|
Furlanetto, Francesco
;
Seneca, Martin
|
|
URI:
|
http://hdl.handle.net/10802/4782
|
|
Útgefandi:
|
Central Bank of Iceland, Economics Department
|
|
Útgáfa:
|
07.2010 |
|
Ritröð:
|
Central Bank of Iceland., Working papers ; 49 |
|
Efnisorð:
|
Neysluvenjur; Fjárfestingar; Líkön
|
|
ISSN:
|
1028-9445 |
|
Tungumál:
|
Enska
|
|
Tengd vefsíðuslóð:
|
http://www.econ.ku.dk/personal/henrikj/ZeuthenWorkshop2010/papers/Seneca.pdf
http://www.cb.is/lisalib/getfile.aspx?itemid=8047
|
|
Tegund:
|
Skýrsla |
|
Gegnir ID:
|
991009737589706886
|
|
Athugasemdir:
|
Myndefni: línurit |
|
Útdráttur:
|
Modern business cycle models systematically underestimate the correlation between consumption and investment. One reason for this failure is that, generally, positive investment-speciÖc technology shocks induce a negative consumption response. The objective of this paper is to investigate whether a positive consumption response to investment-speciÖc technology shocks can be obtained in a modern business cycle model. We Önd that the answer to this question is yes. With a combination of nominal rigidities and nonseparable preferences, the consumption response is positive for very general parameterisations of the model. |
