Investment, capacity, and uncertainty
Subtitle: a putty-clay approach
By: Simon Gilchrist, John C. Williams.
Contributors: Williams, John C.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10446; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10446.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Capital investments -- Econometric models.
Description: "We embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine replacement in a general equilibrium model based on putty-clay technology.  In the presence of irreversible factor proportions, a mean-preserving spread in the productivity of investment raises aggregate investment, productivity, and output.  Increases in uncertainty have important dynamic implications, causing sustained increases in investment and hours and a medium-term expansion in the growth rate of labor productivity"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 1/12/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.