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Financial Development and Economic Volatility : A Unified Explanation
Wang, Pengfei; Wen, Yi - 2009
heterogenous firms facing borrowing constraints and investment irreversibility, it is shown that financial liberalization increases … the lumpiness of firm-level investment but decreases the variance of aggregate output. Hence, the model predicts that …
Persistent link: https://www.econbiz.de/10014208300
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Financial Development and Long-Run Volatility Trends
Wang, Pengfei - 2013
spending shocks, preference shocks) on aggregate output and investment, and why this volatility-reducing effect diminishes with …
Persistent link: https://www.econbiz.de/10013088166
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Residential Investment and Economic Growth
Wen, Yi - In: Annals of Economics and Finance 2 (2001) 2, pp. 437-444
The causal relationship between growth and fixed capital formation is reexamined. Our findings are in sharp contrast with the earlier findings by Blomstrom et al. (1996) that capital formation does not contribute to economic growth. However, our findings also reject the conventional wisdom...
Persistent link: https://www.econbiz.de/10009145682
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Production and Inventory Behavior of Capital
Wen, Yi - In: Annals of Economics and Finance 8 (2007) 1, pp. 95-112
investment demand and the production of capital goods. There are three major findings: first, capital suppliers¡¯ inventory … behavior makes investment demand more volatile in equilibrium; second, equilibrium price of capital is characterized by …
Persistent link: https://www.econbiz.de/10009228649
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Hayashi Meets Kiyotaki and Moore : A Theory of Capital Adjustment Costs
Wang, Pengfei - 2011
Firm-level investment is lumpy and volatile but aggregate investment is much smoother and highly serially correlated …. These different patterns of investment behavior have been viewed as indicating convex adjustment costs at the aggregate … yet at the same time generate lumpiness in plant-level investment. In particular, our model can (i) derive aggregate …
Persistent link: https://www.econbiz.de/10013132690
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Understanding the Impact of Oil Shocks
Aguiar-Conraria, Luís Francisco; Wen, Yi - Núcleo de Investigação em Políticas Económicas … - 2005
This paper provides new empirical evidence on and theoretical support for the close link between oil prices and aggregate macroeconomic performence in the 1970s. Although this link has been well documented in the empirical literature and is further confirmed in this paper, standard economic...
Persistent link: https://www.econbiz.de/10005827136
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Hayashi Meets Kiyotaki and Moore: A Theory of Capital Adjustment
Wang, Pengfei; Wen, Yi - In: Review of Economic Dynamics 15 (2012) 2, pp. 207-225
Firm-level investment is lumpy and volatile but aggregate investment is much smoother and highly serially correlated …. These different patterns of investment behavior have been viewed as indicating convex adjustment costs at the aggregate … yet at the same time generate lumpiness in plant-level investment. In particular, our model can (i) derive aggregate …
Persistent link: https://www.econbiz.de/10009318568
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Input and Output Inventory Dynamics
Wen, Yi - In: American Economic Journal: Macroeconomics 3 (2011) 4, pp. 181-212
This paper develops an analytically tractable general equilibrium model of inventory dynamics based on a precautionary stockout-avoidance motive. The model's predictions are broadly consistent with the US business cycle and key features of inventory behavior. It is also shown that technological...
Persistent link: https://www.econbiz.de/10009323530
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Leveraged Borrowing and Boom-Bust Cycles
Pintus, Patrick; Wen, Yi - In: Review of Economic Dynamics 16 (2013) 4, pp. 617-633
Investment booms and asset "bubbles" are often the consequence of heavily leveraged borrowing and speculations of … are consistent with the basic features of investment booms and the consequent asset-market crashes led by excessive credit …
Persistent link: https://www.econbiz.de/10010856604
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What inventories tell us about aggregate fluctuations—A tractable approach to (S,s) policies
Wang, Pengfei; Wen, Yi; Xu, Zhiwei - In: Journal of Economic Dynamics and Control 44 (2014) C, pp. 196-217
We estimate a DSGE model with (S,s) inventory policies. We find that (i) taking inventories into account can significantly improve the empirical fit of DSGE models in matching the standard business-cycle moments (in addition to explaining inventory fluctuations); (ii) (S,s) inventory policies...
Persistent link: https://www.econbiz.de/10011051930