Two-Sector Aggregative Models and the Investment Demand Function.
This article discusses the two-sector aggregative models and the investment demand function. The study alters the H-S model created by economists Dale Henderson and Thomas Sargent to allow for an investment demand function based on costs of adjustment. In analyzing the comparative static results of...
| Publicado en: | American Economic Review Vol. 67; no. 4; pp. 723 - 728 |
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| Formato: | Artículo |
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American Economic Association
Sep77
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4501179&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4501179 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: Sep77 vid: 67 iid: 4 pid: 22 pub: American Economic Association artinfo: ui: 4501179 ppf: 723 ppct: 5 formats: tig: atl: Two-Sector Aggregative Models and the Investment Demand Function. aug: au: Woglom, Geoffrey affil: Boston College. Banking Section, Board of Governors of the Federal Reserve System. su: Econometrics Economic models Consumption (Economics) Economic demand Capital market Henderson, Dale Sargent, Thomas Money market sug: subj: Econometrics Economic models Consumption (Economics) Economic demand Capital market Henderson, Dale Sargent, Thomas Money market ab: This article discusses the two-sector aggregative models and the investment demand function. The study alters the H-S model created by economists Dale Henderson and Thomas Sargent to allow for an investment demand function based on costs of adjustment. In analyzing the comparative static results of this model one can determine whether the strange results of the H-S model are due to the assumption of a two-sector production technology or the assumption of a perfect market in existing capital goods. The profit-maximizing subsystem in the H-S model can be solved to yield the price level and the marginal product of capital as functions of the relative price of investment. A general equilibrium occurs when the consumption good, money and investment good markets are in equilibrium. The H-S results seem to imply that the analysis of the effectiveness of fiscal policy in the traditional IS-LM analysis is very sensitive to the assumption of a one-sector production technology. Besides assuming a two-sector production technology, the H-S model also assumes a perfect capital market, where the asset value of capital is always equal to reproduction cost. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1977 holdings: @attributes: islocal: N |
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