A Note on NNS Models: Introducing Physical Capital; Avoiding Rationing
Détails
ID Serval
serval:BIB_440BC940D9D1
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
A Note on NNS Models: Introducing Physical Capital; Avoiding Rationing
Périodique
Economic Letters
Statut éditorial
Publié
Date de publication
2002
Peer-reviewed
Oui
Volume
77
Pages
433-437
Langue
anglais
Résumé
This note makes two comments on recent NNS models. First, it disputes the way physical capital has been introduced into these models arguing that this leads to the dubious postulate that the cost of adjusting physical capital stock is an order of magnitude lower than the cost of changing prices. Second it warns against a possible logical inconsistency whereby calibrated NNS models are implicitly assuming that some (price-constrained) firms are willing and able to sell their output below cost.
Mots-clé
New neo-classical synthesis, sticky prices, cost-of-adjusting capital
Site de l'éditeur
Création de la notice
19/11/2007 10:24
Dernière modification de la notice
20/08/2019 13:48