Investment, Capacity Utilization, and the Real Business Cycle
This paper adopts Keynes' view that shocks to the marginal efficiency of investment are important for business fluctuations, but incorporates it in a neoclassical framework with endogenous capacity utilization. Increases in the efficiency of newly produced investment goods stimulate the formati...
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| Veröffentlicht in: | The American economic review 1988-06, Vol.78 (3), p.402-417 |
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| container_title | The American economic review |
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| creator | Greenwood, Jeremy Hercowitz, Zvi Huffman, Gregory W. |
| description | This paper adopts Keynes' view that shocks to the marginal efficiency of investment are important for business fluctuations, but incorporates it in a neoclassical framework with endogenous capacity utilization. Increases in the efficiency of newly produced investment goods stimulate the formation of "new" capital and more intensive utilization and accelerated depreciation of "old" capital. Theoretical and quantitative analysis suggests that the shocks and transmission mechanism studied here may be important elements of business cycles. |
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Increases in the efficiency of newly produced investment goods stimulate the formation of "new" capital and more intensive utilization and accelerated depreciation of "old" capital. Theoretical and quantitative analysis suggests that the shocks and transmission mechanism studied here may be important elements of business cycles.</description><identifier>ISSN: 0002-8282</identifier><language>eng</language><publisher>Menasha, Wis: The American Economic Association</publisher><subject>Business cycles ; Capacity utilization ; Capital depreciation ; Capital goods ; Capital investments ; Capital stocks ; Consumer economics ; Economic fluctuations ; Economic models ; Investment ; Production capacity ; Productivity ; Standard deviation</subject><ispartof>The American economic review, 1988-06, Vol.78 (3), p.402-417</ispartof><rights>Copyright 1988 American Economic Association</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/1809141$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/1809141$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,776,780,799,27848,57995,58228</link.rule.ids></links><search><creatorcontrib>Greenwood, Jeremy</creatorcontrib><creatorcontrib>Hercowitz, Zvi</creatorcontrib><creatorcontrib>Huffman, Gregory W.</creatorcontrib><title>Investment, Capacity Utilization, and the Real Business Cycle</title><title>The American economic review</title><description>This paper adopts Keynes' view that shocks to the marginal efficiency of investment are important for business fluctuations, but incorporates it in a neoclassical framework with endogenous capacity utilization. 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Theoretical and quantitative analysis suggests that the shocks and transmission mechanism studied here may be important elements of business cycles.</description><subject>Business cycles</subject><subject>Capacity utilization</subject><subject>Capital depreciation</subject><subject>Capital goods</subject><subject>Capital investments</subject><subject>Capital stocks</subject><subject>Consumer economics</subject><subject>Economic fluctuations</subject><subject>Economic models</subject><subject>Investment</subject><subject>Production capacity</subject><subject>Productivity</subject><subject>Standard deviation</subject><issn>0002-8282</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1988</creationdate><recordtype>article</recordtype><sourceid>K30</sourceid><recordid>eNpdzktLxDAABOAcFFxX_4GHgOBpC3m1SQ4etPhYWBDEPZe8qilpujapUH-9lfXkaRj4GOYErBBCpBBEkDNwnlKHfjvmK3C7jV8u5d7FvIG1Oijj8wz32Qf_rbIf4gaqaGH-cPDVqQDvp-SjSwnWswnuApy2KiR3-ZdrsH98eKufi93L07a-2xXvhPBcyJabsi0NochJqw3lmlQVs4hViDKutMSUYy20FlaWFgvJnJRWUcW1LitF1-DmuHsYh89p-dv0PhkXgopumFJDK0kFYWSB1_9gN0xjXL41mAjJEZGILerqqLqUh7E5jL5X49xggSRmmP4A9bpZSg</recordid><startdate>19880601</startdate><enddate>19880601</enddate><creator>Greenwood, Jeremy</creator><creator>Hercowitz, Zvi</creator><creator>Huffman, Gregory W.</creator><general>The American Economic Association</general><general>American Economic Association</general><scope>EOLOZ</scope><scope>FKUCP</scope><scope>HZAIM</scope><scope>K30</scope><scope>PAAUG</scope><scope>PAWHS</scope><scope>PAWZZ</scope><scope>PAXOH</scope><scope>PBHAV</scope><scope>PBQSW</scope><scope>PBYQZ</scope><scope>PCIWU</scope><scope>PCMID</scope><scope>PCZJX</scope><scope>PDGRG</scope><scope>PDWWI</scope><scope>PETMR</scope><scope>PFVGT</scope><scope>PGXDX</scope><scope>PIHIL</scope><scope>PISVA</scope><scope>PJCTQ</scope><scope>PJTMS</scope><scope>PLCHJ</scope><scope>PMHAD</scope><scope>PNQDJ</scope><scope>POUND</scope><scope>PPLAD</scope><scope>PQAPC</scope><scope>PQCAN</scope><scope>PQCMW</scope><scope>PQEME</scope><scope>PQHKH</scope><scope>PQMID</scope><scope>PQNCT</scope><scope>PQNET</scope><scope>PQSCT</scope><scope>PQSET</scope><scope>PSVJG</scope><scope>PVMQY</scope><scope>PZGFC</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>19880601</creationdate><title>Investment, Capacity Utilization, and the Real Business Cycle</title><author>Greenwood, Jeremy ; Hercowitz, Zvi ; Huffman, Gregory W.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-g227t-9f7c5f5c230e9dbc37b2664d0460347ab91371b8bb8d95d1894e99da3a7bb56a3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1988</creationdate><topic>Business cycles</topic><topic>Capacity utilization</topic><topic>Capital depreciation</topic><topic>Capital goods</topic><topic>Capital investments</topic><topic>Capital stocks</topic><topic>Consumer economics</topic><topic>Economic fluctuations</topic><topic>Economic models</topic><topic>Investment</topic><topic>Production capacity</topic><topic>Productivity</topic><topic>Standard deviation</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Greenwood, Jeremy</creatorcontrib><creatorcontrib>Hercowitz, Zvi</creatorcontrib><creatorcontrib>Huffman, Gregory W.</creatorcontrib><collection>Periodicals Index Online Segment 01</collection><collection>Periodicals Index Online Segment 04</collection><collection>Periodicals Index Online Segment 26</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - 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| identifier | ISSN: 0002-8282 |
| ispartof | The American economic review, 1988-06, Vol.78 (3), p.402-417 |
| issn | 0002-8282 |
| language | eng |
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| source | Periodicals Index Online; EBSCOhost Business Source Complete; Jstor Complete Legacy |
| subjects | Business cycles Capacity utilization Capital depreciation Capital goods Capital investments Capital stocks Consumer economics Economic fluctuations Economic models Investment Production capacity Productivity Standard deviation |
| title | Investment, Capacity Utilization, and the Real Business Cycle |
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