scholarly journals What Prevents a Real Business Cycle Model from Matching the U.S. Data? Decomposing the Labor Wedge

2017 ◽  
Author(s):  
Dmitry Plotnikov
Keyword(s):  
Business Cycle ◽  
Real Business Cycle ◽  
Cycle Model ◽  
Labor Wedge ◽  
Business Cycle Model ◽  
The U.S ◽  
Real Business Cycle Model

scholarly journals Plant-Level Irreversible Investment and Equilibrium Business Cycles

2002 ◽  
Vol 92 (1) ◽  
pp. 181-197 ◽  
Author(s):  
Marcelo L Veracierto
Keyword(s):  
Business Cycles ◽  
Business Cycle ◽  
Real Business Cycle ◽  
Aggregate Fluctuations ◽  
Cycle Model ◽  
Irreversible Investment ◽  
Business Cycle Model ◽  
Plant Level ◽  
Aggregate Dynamics ◽  
Real Business Cycle Model

This paper evaluates the importance of microeconomic irreversibilities for aggregate dynamics using a real-business-cycle (RBC) model characterized by investment irreversibilities at the establishment level. The main finding is that investment irreversibilities do not play a significant role in an otherwise standard real-business-cycle model: Even though investment irreversibilities are crucial for establishment-level dynamics, aggregate fluctuations are basically the same under fully flexible or completely irreversible investment.

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