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Home Production Meets Time-to-Build (2000)

Abstract
An innovation in this paper is to introduce a time-to-build technology for the production of market capital into a model with home production. Our main finding is that the two anomalies that have plagued all household production models---the positive correlation between business and household investment, and household investment leading business investment over the business cycle---are resolved when time-to-build is added.

Publication details
Download http://citeseer.ist.psu.edu/407750.html
Source http://www.clev.frb.org/Research/workpaper/2000/Wp0007.pdf
Publisher unknown
Contributors The Pennsylvania State University CiteSeer Archives
Repository CiteSeer (United States)
Keywords Paul Gomme,Finn Kydl,Peter Rupert Home Production Meets Time-to-Build
Language Englisch

Publications citing this publication (1)
The return to capital and the business cycle