In a stochastic dynamic general equilibrium framework, we introduce the concept of capacity utilization (as opposed to capital utilization). We consider an economy where monopolistic firms use a putty-clay technology and decide on their productive capacity and technology under under uncertainty....

This paper analyzes the relationship between age-specific fertility, mortality and real wages in Sweden during the demographic transition. We fit a model of life cycle fertility to two and a half centuries of Swedish time-series data. The model fits the data well, accurately portraying the total...

We use balance sheet and National Income and Products Accounts (NIPA) data to calibrate factor shares in a model with three factors (land, labor, and capital) and three sectors (business, household, and government). These estimates are used in an overlapping generations model with land to study...

(Copyright: Elsevier)