Last edited by Dikora
Thursday, July 30, 2020 | History

4 edition of Nonconvex factor adjustments in equilibrium business cycle models found in the catalog.

Nonconvex factor adjustments in equilibrium business cycle models

Aubhik Khan

Nonconvex factor adjustments in equilibrium business cycle models

do nonlinearities matter?

by Aubhik Khan

  • 357 Want to read
  • 13 Currently reading

Published by Federal Reserve Bank of Minneapolis in [Minneapolis, Minn.] .
Written in English


Edition Notes

StatementAubhik Khan and Julia Thomas.
SeriesFederal Reserve Bank of Minneapolis, Research Department staff report ;, 306, Staff report (Federal Reserve Bank of Minneapolis. Research Dept. : Online) ;, 306.
ContributionsThomas, Julia.
Classifications
LC ClassificationsHB1
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3476465M
LC Control Number2005615984

Specifically, assuming nonconvex costs of capital adjustment, I derive generalized (S, s) adjustment rules yielding lumpy plant-level investment within an otherwise standard equilibrium business. Khan, A. and J.K. Thomas (), “Nonconvex Factor Adjustments in Equilibrium Business Cycle Models: Do Nonlinearities Matter?”, Journal of Monetary Econom – Khan, A. and J.K. Thomas (), “Inventories and the Business Cycle: An Equilibrium Analysis of (S,s) Policies,” American Economic Rev Krueger, D.

Abstract We develop an equilibrium business cycle model where producers of final goods pursue generalized (S,s) inventory policies with respect to intermediate goods due to nonconvex factor adjustment costs. When calibrated to reproduce the average inventory-to-sales. “business cycles are, to a surprisingly large degree, inventory cycles”.3 By contrast, modern business cycle theory has been surprisingly silent on the topic of inventories. 4 We study a dynamic stochastic general equilibrium model where, given nonconvex factor adjustment costs, producers follow generalized (S,s) inventory policies with.

Nonconvex Factor Adjustments in Equilibrium Business Cycle Models: Do Nonlinearities Matter? Using an equilibrium business cycle model, we search for aggregate nonlinearities arising from the. Nonconvex factor adjustments in equilibrium business cycle models: do nonlinearities matter? A Khan, JK Thomas Journal of monetary economics 50 (2), ,


Share this book
You might also like

Nonconvex factor adjustments in equilibrium business cycle models by Aubhik Khan Download PDF EPUB FB2

The first, with no adjustment costs, is the standard equilibrium business cycle model. It will serve as our reference. The second, with convex adjustment costs, has been used extensively in the empirical investment literature. This, the partial adjustment model, assumes adjustment costs of the form φ(i/k−λ) 2 k/ by: We evaluate the aggregate implications of discrete and occasional capital adjustment in an equilibrium business cycle model.

In our model economy, nonconvex costs of capital ad-justment vary across establishments and lead to periods of investment inactivity. Thus, the model generates a distribution of plants over capital. Models with nonconvex capital adjustment costs deliver lumpy investment patterns at the micro level, but also feature aggregate business cycle statistics that are.

Using an equilibrium business cycle model, the authors search for aggregate nonlinearities arising from the introduction of nonconvex capital adjustment costs. The authors find that while such adjustment costs lead to nontrivial nonlinearities in aggregate investment demand, equilibrium investment is effectively unchanged.

Using an equilibrium business cycle model, we search for agregate nonlinearities arising from the introduction of nonconvex capital adjustment costs.

We find that, while such adjustment costs lead to nontrivial nonlinearities in aggregate investment demand, equilibrium investment is effectively unchanged. Using an equilibrium business cycle model, we search for aggregate nonlinearities arising from the introduction of nonconvex capital adjustment costs.

We find that, while such costs lead to nontrivial nonlinearities in aggregate investment demand, equilibrium investment is effectively unchanged. Nonconvex Factor Adjustments in Dynamic Equilibrium Models Aubhik Khan September Course Description We will survey recent research on the aggregate implications of nonconvex factor adjustment costs.

We will examine their effect on the long-run distribution of investment and job turnover, and on aggregate fluctuations.

Using an equilibrium business cycle model, we search for agregate nonlinearities arising from the introduction of nonconvex capital adjustment costs. We find that, while such adjustment costs lead to nontrivial nonlinearities in aggregate investment demand, equilibrium investment is effectively : Aubhik Khan and Julia K.

Thomas. “business cycles are, to a surprisingly large degree, inventory cycles.” 3 By contrast, modern business cycle theory has been surprisingly silent on the topic of inventories.

4 We study a dynamic stochastic general equilibrium model where, given nonconvex factor adjustment costs, producers follow generalized () inventory policies with. Khan, A. and J. Thomas, Nonconvex Factor Adjustments in Equilibrium Business Cycle Models: Do Nonlinearities Matter?," Journal of Monetary Economics 50 (),Idiosyncratic Shocks and the Role of Nonconvexities in Plant and Aggregate In- vestment Dynamics," Econometrica 76 (), Using an equilibrium business cycle model, the authors search for aggregate nonlinearities arising from the introduction of nonconvex capital adjustment costs.

The authors find that while such adjustment costs lead to nontrivial nonlinearities in aggregate investment demand, equilibrium investment is effectively : Aubhik Khan and Julia K.

Thomas. Partial Adjustment without Apology. Joint with Robert G. King (February ). Published in International Economic Review, August Nonconvex Factor Adjustments in Equilibrium Business Cycle Models: Do Nonlinearities Matter.

Joint with Aubhik Khan (April ). Published in Journal of Monetary Economics, March The authors develop an equilibrium business cycle model in which final goods producers pursue generalized (S,s) inventory policies with respect to intermediate goods, a consequence of nonconvex factor adjustment costs.

ment in an equilibrium business cycle model. In our model economy, nonconvex costs of capital adjustment vary across establishments and lead to periods of invest-ment inactivity. Thus, the model generates a distribution of plants over capital. This distribution evolves over the business cycle in response to changes in productivity.

A R&D Based Real Business Cycle Model. Nonconvex Factor Adjustments in Equilibrium Business Cycle Models: Do Nonlinearities Matter. February Journal of. CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): We develop an equilibrium business cycle model where producers of final goods pursue generalized (S,s) inventory policies with respect to intermediate goods due to nonconvex factor adjustment costs.

When calibrated to reproduce the average inventory-to-sales ratio in postwar U.S. data, our model. The meeting of the title "Equilibrium Problems and Variational Models", which was held in Erice (Sicily) in the period June 23 - July 2was the occasion of the presentation of some of these papers; other results are a consequence of a fruitful and Format: Hardcover.

CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): We develop an equilibrium business cycle model in which the producers of final goods pursue generalized (S,s) inventory policies with respect to intermediate goods, a consequence of nonconvex factor adjustment costs.

Calibrating our model to reproduce the average inventory-to-sales ratio in. select article Nonconvex factor adjustments in equilibrium business cycle models: do nonlinearities matter. Nonconvex factor adjustments in equilibrium business cycle models: do nonlinearities matter.

by Khan, Aubhik & Thomas, Julia K. Partial Adjustment without Apology by Robert G. King & Julia K. Thomas; Modeling inventories over the business cycle by Julia K. Thomas & Aubhik Khan; Inventories and the business cycle: an equilibrium analysis of (S,s.

Inventories and the business cycle: an equilibrium analysis of (S,s) policies. Aubhik Khan and Julia Thomas. NoWorking Papers from Federal Reserve Bank of Philadelphia Abstract: We develop an equilibrium business cycle model in which the producers of final goods pursue generalized (S,s) inventory policies with respect to intermediate goods, a consequence of nonconvex factor adjustment Cited by: Plant-level nonconvex output adjustment and aggregate fluctuations An equilibrium business cycle model with discrete changes in shiftwork at the plant-level was used as a workhorse to carry out this analysis.

The model was calibrated to the average utilization of shiftwork in a cross-section of U.S. manufacturing plants and an estimate of a Cited by: 6.A DSGE Model with Habit Formation and Nonconvex Capital Adjustment Costs Jonghyeon Oh August Abstract The literature debates the importance of micro-level lumpy investment on macro-level econ-omy.

Khan and Thomas (, ) build general equilibrium models with nonconvex capital adjustment costs to explain lumpy Size: KB.