Lumpy investment, sectoral propagation, and business cycles (Invited Paper)

I study the aggregate implications of micro-level lumpy investment in a model consistent with the empirical dynamics of the real interest rate. The elasticity of aggregate investment with respect to shocks is procyclical because more firms are likely to make an extensive margin investment in expansions than in recessions. Matching the dynamics of the real interest rate is key to generating this result because it disciplines the interest-elasticity of investment and avoids counterfactual behavior of the model that would otherwise eliminate most of the procyclical responsiveness. Therefore, data on interest rates place important discipline in aggregating micro-level investment behavior. (JEL D25, E13, E22, E23, E43, G31, H25)

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LUMPY INVESTMENT AND ENDOGENOUS BUSINESS CYCLES IN AN EVOLUTIONARY MULTI-AGENT MODEL

Cybernetics & Systems ◽

10.1080/01969720701534026 ◽

2007 ◽

Vol 38 (7) ◽

pp. 631-666

Author(s):

Giovanni Dosi ◽

Giorgio Fagiolo ◽

Andrea Roventini

Keyword(s):

Business Cycles ◽

Agent Model ◽

Lumpy Investment ◽

Endogenous Business Cycles ◽

Multi Agent

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Is lumpy investment relevant for the business cycles in open economies?

10.14711/thesis-b1155729 ◽

2011 ◽

Author(s):

Jing Zhou

Keyword(s):

Business Cycles ◽

Open Economies ◽

Lumpy Investment

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Peculiarities of Modern Dynamics of the Global Economy

Voprosy Ekonomiki ◽

10.32609/0042-8736-2010-9-78-92 ◽

2010 ◽

pp. 78-92 ◽

Cited By ~ 1

Author(s):

V. Klinov

Keyword(s):

Economic Growth ◽

Economic Development ◽

Business Cycles ◽

Global Economy ◽

Long Waves ◽

Rapid Expansion ◽

Business Taxation ◽

Modern World ◽

China And India ◽

World Economic

Rates and factors of modern world economic growth and the consequences of rapid expansion of the economies of China and India are analyzed in the article. Modification of business cycles and long waves of economic development are evaluated. The need of reforming business taxation is demonstrated.

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Institutions as the Ordering Factor and as the Destabilizing Force: New Institutional and Post Keynesian Perspectives

Voprosy Ekonomiki ◽

10.32609/0042-8736-2006-8-102-118 ◽

2006 ◽

pp. 102-118 ◽

Cited By ~ 3

Author(s):

A. Skorobogatov

Keyword(s):

Economic Policy ◽

Business Cycles ◽

Institutional Theory ◽

Institutional Environment ◽

Institutional Arrangements ◽

Economic Stability ◽

Forward Contracts

The paper is dedicated to the New Institutional and Post Keynesian perspectives on institutions and their relation to economic stability. Embeddedness, institutional environment, and institutional arrangements are considered. Within these institutions conventional expectations, the economic policy and forward contracts are analyzed. Upon these perspectives the author shows a contradictory relation between institutions and the order and develops an institutional theory of business cycles.

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