Investment Price Rigidities and Business Cycles

Moura, Alban (2015) Investment Price Rigidities and Business Cycles. TSE Working Paper, n. 15-612, Toulouse

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Official URL: http://tse-fr.eu/pub/29964

Abstract

I incorporate investment price rigidity in a two-sector monetary model of business cycles. Fit to quarterly U.S. time series, the model suggests that price sluggishness in the investment sector is the single most empirically relevant friction to match the data. Sticky investment prices constitute an important propagation mechanism to understand the sources of aggregate fluctuations, the dynamic effects of technology shocks, and the properties of the relative price of investment goods.

Item Type: Monograph (Working Paper)
Language: English
Date: November 2015
Place of Publication: Toulouse
Uncontrolled Keywords: Multisector DSGE model, investment price stickiness, relative price of investment
JEL codes: E3 - Prices, Business Fluctuations, and Cycles
E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
Subjects: B- ECONOMIE ET FINANCE
Divisions: Toulouse School of Economics - TSE
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 13 Jun 2016 09:58
Last Modified: 18 Oct 2017 15:11
OAI ID: oai:tse-fr.eu:29964
URI: http://publications.ut-capitole.fr/id/eprint/19158

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