Asset Returns and Business Cycles in Models with Investment Adjustment Cost

We show that adjustment cost models with labor supply can explain both asset returns and business cycle facts when adjustment costs penalize the changes of investment. This conclusion stands in contrast to results obtained in the literature with adjustment costs that penalize the changes of capital.

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Year of publication:	2005-01
Authors:	Beaubrun-Diant, Kevin ; Tripier, Fabien
Institutions:	Université Paris-Dauphine (Paris IX)
Subject:	Asset returns \| Business cycle \| Adjustment costs

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Series:	Economics Papers from University Paris Dauphine.
Type of publication:	Book / Working Paper
Notes:	Published in Economics Letters, 2005, Vol. 86, no. 1. pp. 141-146.Length: 5 pages
Classification:	E22 - Capital; Investment (including Inventories); Capacity ; E32 - Business Fluctuations; Cycles ; G12 - Asset Pricing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010708592