Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/209853
Authors: 
Sveen, Tommy
Weinke, Lutz
Year of Publication: 
2007
Series/Report no.: 
Working Paper No. 2005/6
Abstract: 
Smoothness in aggregate capital accumulation is a necessary condition for New-Keynesian (NK) models to imply a quantitatively relevant monetary transmission mechanism (see, e.g., Woodford 2005). Can that aggregate smoothness be entertained in the context of an NK model featuring lumpy plant-level investment? Our answer is yes. Imperfect competition in goods markets and/or sticky prices are identified as economic mechanisms which render lumpy investment relevant in general equilibrium.
Subjects: 
lumpy investment
sticky prices
JEL: 
E22
E31
E32
Persistent Identifier of the first edition: 
ISBN: 
82-7553-306-6
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.no
Document Type: 
Working Paper
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