Investment, Capacity, and Uncertainty: A Putty-Clay Approach

This paper introduces Heckscher-Ohlin trade features into a two-country dynamic stochastic general equilibrium model, and studies the international transmission of productivity shocks through trade in goods. This framework improves upon existing international real business cycle models in that it generates business cycle properties comparable with the empirical evidence regarding the terms of trade and the trade balance. (Copyright: Elsevier)

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Year of publication:	2005
Authors:	Gilchrist, Simon ; Williams, John C.
Published in:	Review of Economic Dynamics. - Society for Economic Dynamics - SED. - Vol. 8.2005, 1, p. 1-27
Publisher:	Society for Economic Dynamics - SED
Subject:	vintage capital \| irreversibility \| capacity utilization \| productivity

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Extent:	application/pdf
Type of publication:	Article
Notes:	Published
Other identifiers:	10.1016/j.red.2004.06.002 [DOI]
Classification:	E32 - Business Fluctuations; Cycles ; F11 - Neoclassical Models of Trade ; F32 - Current Account Adjustment; Short-Term Capital Movements ; F41 - Open Economy Macroeconomics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004970364