Review of Economic Studies Vol. 60 No. 4 1993

Sectoral Shocks, Learning, and Aggregate Fluctuations

A. Caplin^1,2; John Leahy¹

¹ Harvard University Press · ² Columbia University

Abstract

We present a model in which sectoral shocks have aggregate consequences. The model relies on irreversible investment and imperfect information to slow the adjustment of expanding industries. We show that this gradual expansion is sub-optimal.

DOI

10.2307/2298099

Volume

60

Issue

4

Pages

777-794

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓