Basu, Parantap; Thoenissen, Christoph - Centre for Dynamic Macroeconomic Analysis, University … - 2009
Is the relative price of investment goods a good proxy for investment frictions? We model this relative price in a … investment rate and the relative price of investment goods thus does not necessarily reflect decline in investment frictions … investment frictions?
We model this relative price in a flexible price international economy with two
fundamental shocks, namely …