ADJUSTMENT COSTS IN INVESTMENT, TIME-PREFERENCES, AND THE CURRENT ACCOUNT

Authors
KARAYALCIN C
Citation
C. Karayalcin, ADJUSTMENT COSTS IN INVESTMENT, TIME-PREFERENCES, AND THE CURRENT ACCOUNT, Journal of international economics, 37(1-2), 1994, pp. 81-95
Citations number
19
Categorie Soggetti
Economics
Journal title
Journal of international economics → ACNP
ISSN journal
00221996
Volume
37
Issue
1-2
Year of publication
1994
Pages
81 - 95
Database
ISI
SICI code
0022-1996(1994)37:1-2<81:ACIITA>2.0.ZU;2-J
Abstract
This paper studies the effects of supply and demand shocks on the opti mal investment and savings decisions of economic agents in a small ope n economy. The two building blocks of the setup are adjustment costs i n investment and a recursive time preference structure. It is shown th at the model can mimic certain stylized facts.