Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
957784 | Journal of Economic Theory | 2006 | 27 Pages |
Abstract
Durable goods are an important component of the business cycle. Equilibrium models of durable goods markets are made difficult by the lumpy nature of individual purchases. We show that a straightforward approximation of the distribution of durable goods holdings gives rise to a tractable equilibrium model. We analyze the case of competition as well as that of a monopoly producer.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Andrew Caplin, John Leahy,