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The role of adjusment costs in interest rate determination

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Novales Cinca, Alfonso (1986) The role of adjusment costs in interest rate determination. [ Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales; nº 04, 1986, ISSN: 2255-5471 ]

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Official URL: http://eprints.ucm.es/20653/




Abstract

We study in this paper the equilibrium influence of adjustment costs of capital on interest rates determination. Considering endogenous interest rates in optimal capital accumulation models introduces nonlinearities which together with expectations of future variables make the model hard to analyze. We use here a solution method that has recently been preposed in the literature, to show that the model is able to reproduce some of the correlations among output, consumption, interest rates and capital that can be observed in actual time series data.


Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Ajustes del capital, Acumulación de capital, Series temporales
Subjects:Social sciences > Economics > Econometrics
Series Name:Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
Volume:1986
Number:04
ID Code:20653
Deposited On:08 Apr 2013 08:06
Last Modified:17 Apr 2015 11:17

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