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http://hdl.handle.net/10419/19176
  

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dc.contributor.authorSchaller, Huntleyen_US
dc.contributor.authorMoore, Bartholomewen_US
dc.date.accessioned2009-01-28T15:56:17Z-
dc.date.available2009-01-28T15:56:17Z-
dc.date.issued1999en_US
dc.identifier.urihttp://hdl.handle.net/10419/19176-
dc.description.abstractThis paper introduces a new approach to understanding investment. The distinctive feature of our approach is that shocks to the economic fundamentals have both persistent and transitory components, and that firms must disentangle the persistent from the transitory shocks. The model generates interesting dynamics. Simulations of the model show that the response of investment to changes in the interest rate can vary widely over time, that the current response of investment depends on the sequence of past shocks, that investment will respond less when the firm is confident about its beliefs and more when a change in economic fundamentals challenges the firm?s beliefs, and that investment booms and crashes may occur without any change in the true state of the economy. Simulations of the model also show that it captures many ?stylized facts? of investment dynamics documented in previous empirical studies.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesHWWA Discussion Paper 77en_US
dc.subject.jelE22en_US
dc.subject.ddc330en_US
dc.subject.stwGesamtwirtschaftliche Investitionstheorieen_US
dc.subject.stwBetriebswirtschaftliche Investitionstheorieen_US
dc.subject.stwSchocken_US
dc.subject.stwRealzinsen_US
dc.subject.stwStochastischer Prozeßen_US
dc.subject.stwLernprozeßen_US
dc.subject.stwBetriebliche Investitionspolitiken_US
dc.subject.stwAnpassungen_US
dc.subject.stwTheorieen_US
dc.titlePersistent and transitory shocks, learning, and investment dynamicsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn303193336en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:hwwadp:77-
Appears in Collections:HWWA Discussion Paper, Hamburgisches Welt-Wirtschafts-Archiv

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