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Can we identify the relative price between consumption and investment?

Ejargque, Joao and McKnight, Stephen (2006) Can we identify the relative price between consumption and investment? Working Paper. University of Essex, Department of Economics, Economics Discussion Papers, Colchester.

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Abstract

This paper considers various AK models to investigate inference about the relative price between consumption and investment using NIPA data. We find, that depending on the model used, we can legitimately generate different time series for this price. If we successfully construct a falling price of investment, the model implies an inadmissibly low share of consumption in output. If we use an admissible share of consumption we generate investment prices which increase over time, contrary to the intuition generated by the price of equipment goods.

Item Type: Monograph (Working Paper)
Uncontrolled Keywords: Endogenous Growth, Technology Shocks, Relative Prices.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Users 161 not found.
Date Deposited: 28 Aug 2014 11:57
Last Modified: 28 Aug 2014 11:57
URI: http://repository.essex.ac.uk/id/eprint/8904

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