Demand shocks and economic fluctuations |
| |
| Authors: | Yi Wen |
| |
| Affiliation: | Research Department, Federal Reserve Bank of St. Louis, P.O. Box 442, St. Louis, MO 63166, USA |
| |
| Abstract: | This paper studies conditions under which demand-side shocks can generate realistic business cycles in RBC models. Although highly persistent demand shocks are necessary for generating procyclical investment, variable capacity utilization and habit formation can reduce the required degree of persistence. |
| |
| Keywords: | Demand shocks Hall's residual Real business cycles Crowding out Investment dynamics |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
