As the millennium draws to an end, the threat posed by the Year 2000 (Y2K) problem is inducing vast private and public … spending on its remediation. In this paper, we model the Y2K problem as an anticipated, permanent loss in output whose … magnitude can be lessened by investing resources in advance. We embed the Y2K problem into a dynamic general equilibrium …

As the millenium draws to an end, the threat posed by the Year 2000 (Y2K) problem is inducing vast private and public … spending on its remediation. In this paper, we embed the Y2K problem into a dynamic general equilibrium framework. We model the … Y2K problem as an anticipated, permanent loss to output whose magnitude can be lessened by investing resources in …

As the millennium draws to an end, the threat posed by the Year 2000 (Y2K) problem is inducing vast private and public … spending on its remediation. In this paper, we model the Y2K problem as an anticipated, permanent loss in output whose … magnitude can be lessened by investing resources in advance. We embed the Y2K problem into a dynamic general equilibrium …

observed characteristics of those triggered by the Y2K bug: (1) Precautionary investment: investment in solving the Y2K problem … begins before the year 2000; (2) Investment delay: although economic agents have been aware of the Y2K problem since the 1960 … resources allocated to solving the Y2K problem increases. In addition, the model predicts that Y2K investment peaks at the end …

As the millennium draws to an end, the threat posed by the Year 2000 (Y2K) problem is inducing vast private and public … spending on its remediation. In this paper, we model the Y2K problem as an anticipated, permanent loss in output whose … magnitude can be lessened by investing resources in advance. We embed the Y2K problem into a dynamic general equilibrium …