Endogenous Fluctuations of Investment and Output in a Model of Discrete Capital Adjustments
Nirei, Makoto
WP#09-01 一橋大学イノベーション研究センター (2009/04)
This paper presents a model of endogenous fluctuations of investment and output at the business cycles frequencies. Aggregate investments fluctuate endogenously due to the strategic complementarity of micro-level lumpy investments. The investment fluctuations are transmitted to the output via variable utilization of capital. Simulat…