Is Investment-Specific Technological Change Really Important for Business Cycles?

• 영문명: Is Investment-Specific Technological Change Really Important for Business Cycles?
• 발행기관: 한국계량경제학회
• 저자명: Kwang Hwan Kim
• 간행물 정보: 『한국계량경제학회 학술대회 논문집』2009년 하계학술대회, 1~27쪽, 전체 27쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2009.08.30

영문 초록

This paper re-examines the effect of investment-specific technology shocks (I-shocks) on the business cycles from a theoretical angle. I show that Greenwood, Hercowitz and Krusell’s (GHK, 2000) influential specification may overstate the contribution of I-shocks to business cycles because it produces an unrealistically high volatility of capital utilization relative to output. The reason for this is that they model only one type of cost to increasing capital utilization, an accelerated depreciation. This paper introduces worker disutility for a longer nonstandard workweek as another cost of capital utilization, which generates volatility of capital utilization relative to output quite close to what we see in the data. Adding worker disutility to the GHK model reduces the importance of I-shocks by almost 60%, cautioning against the idea that I-shocks can be a sizable contributor to output fluctuation.

목차

1 Introduction

2 GHK (2000) model revisited

3 Data on the Workweek of Capital

4 A More General Model of Capital Utilization

5 Conclusions

키워드

Investment-Specific Technology Shock Capital Utilization