| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059267 | Economics Letters | 2014 | 4 Pages |
Abstract
Consumption falls counter-factually on impact for investment-specific technology shocks, which, recent literature suggests, are important drivers of business cycles. Introducing financial frictions and variable capacity utilization to the standard New-Keynesian setup can overturn this co-movement problem, without imposing restrictions on wealth effects, or wage rigidities.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Abeer Reza,