Asset Returns and Business Cycles in Models with Investment Adjustment Cost
Beaubrun-Diant, Kevin; Tripier, Fabien (2005), Asset Returns and Business Cycles in Models with Investment Adjustment Cost, Economics Letters, 86, 1, p. 141-146. http://dx.doi.org/10.1016/j.econlet.2004.07.007
TypeArticle accepté pour publication ou publié
Journal nameEconomics Letters
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Abstract (EN)We show that adjustment cost models with labor supply can explain both asset returns and business cycle facts when adjustment costs penalize the changes of investment. This conclusion stands in contrast to results obtained in the literature with adjustment costs that penalize the changes of capital.
Subjects / KeywordsAsset returns; Business cycle; Adjustment costs
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