Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/209978
Authors: 
Furlanetto, Francesco
Seneca, Martin
Year of Publication: 
2011
Series/Report no.: 
Working Paper 2011/02
Abstract: 
In this paper we study the transmission for capital depreciation shocks. The existing literature in the Real Business Cycle tradition has concluded that these shocks are irrelevant for business cycle fluctuations. We show that these shocks are potentially important drivers of aggregate fluctuations in a New Keynesian model. Nominal rigidities and some persistence in the shock process are the key ingredients to generate co-movement across real variables.
Subjects: 
depreciation shocks
investment-specific technology shocks
consumption
nominal rigidities
co-movement
JEL: 
E32
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-598-4
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/4.0/deed.no
Document Type: 
Working Paper
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