This paper provides a simple dynamic optimization model of durable goods inventories. Closed-form solutions are derived in a general equilibrium environment with imperfect information and serially correlated shocks. The model is then applied to scrutinize some popular conjectures regarding the causes of the volatility reduction of GDP since 1984. JEL Classification: E22, E23, E32.

Using a new dataset on imports of technology and total factor productivity (TFP) over more than a century for the OECD countries, this paper tests for international technological transmission through trade. The empirical estimates suggest that imports of knowledge have been responsible for an almost 200% increase in TFP over the past century, but that the spillover effect has been highly uneven...

This paper provides a dynamic optimization model of durable good inventories to study the interactions between investment demand and production of capital goods. There are three major findings: First, capital suppliers’ inventory behavior makes investment demand more volatile in equilibrium; Second, equilibrium price of capital is characterized by downward stickiness; Third, the responses of th...

Using a new dataset on imports of technology and total factor productivity (TFP) over more than a century for the OECD countries, this paper tests for international technological transmission through trade. The empirical estimates suggest that imports of knowledge have been responsible for an almost 200% increase in TFP over the past century, but that the spillover effect has been highly uneven...

Together with a sense of entering a New Economy, the US experienced in the second half of the 1990s an economic expansion, a stock market boom, a financing boom for new firms and productivity gains. In this paper, we propose an interpretation of these events within a general equilibrium model with financial frictions and decreasing returns to scale in production. We show that the mere prospect ...

Although initially originated as a totally empirical relationship to explain the volume of trade between two partners, gravity equation has been the focus of several theoretic models that try to explain it. Specialization models are of great importance in providing a solid theoretic ground for gravity equation in bilateral trade. Some research papers try to improve specialization models by addi...

sensitivity analysis with respect to the functional forms provides estimates of the uncertainties involved in choosing a specific functional structure. this is vital in cge modeling where it is conventional to take elasticities from other studies. in the present study, the robustness of model results with respect to the functional form is checked. in one scenario, the production function is rep...

selecting a set of features and price for new product is one of the most important and difficult decisions for any firm. for its implementation firms require information by demand of consumers about product features,the cost of providing these features and reaction of existing competitors to new product entry. in this research, with the help of game theory, the various positions of new product ...

the main objective of this paper is to study the relationship between the energy consumption (energy use intensity), economic growth, and co2 emission in iran. to that end, we use time series data of iran during 1967–2004. in order to examine the long-run relationship among these variables, the johanson-juselius cointegration method is used along with vecm. the main finding of this study shows ...