Production and inventory behavior of capital
By: by Yi Wen.
Contributors: Federal Reserve Bank of St. Louis.
Series: Working paper ;; 2005-044A; Working paper (Federal Reserve Bank of St. Louis : Online) ;; 2005-044A.
Publisher: Federal Reserve Bank of St. Louis
Published: 2005
Place of publication: [St. Louis, Mo.]
Language: eng
Format: Electronic resource
Subjects: Supply and demand.; Capital investments.
Description: "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 the capital market to interest rate and other environmental changes are asymmetric.  All are the results of equilibrium interactions between demand and supply"--Federal Reserve Bank of St. Louis web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 7/6/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.