Macrodynamic and Financial Effects of a Large-Scale Technology Change

We examine the implications of technological change which results in large-scale capital depreciation for the macrodynamic and financial properties of a dynamic general equilibrium model. In an economy where investors fear a capital-devaluing change in technology, the introduction of the possibility of such an event helps to resolve the equity premium and risk-free rate puzzles.

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Year of publication:	2004
Authors:	Gershun, Natalia
Published in:	International Journal of Business and Economics. - College of Business, ISSN 1607-0704. - Vol. 3.2004, 1, p. 67-81
Publisher:	College of Business
Subject:	general equilibrium \| asset pricing \| technology shocks

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Extent:	application/pdf text/html
Type of publication:	Article
Classification:	E23 - Production ; E32 - Business Fluctuations; Cycles ; G12 - Asset Pricing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010837297