Estimating the long-run user cost elasticity

• 成果类型: Article
• 署名作者: Schaller, Huntley
• 署名单位: Carleton University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2005.01.009
• 发表日期: 2006
• 页码: 725-736
• 关键词: user cost elasticity; capital stocks; INVESTMENT

摘要

The user cost elasticity is a parameter of central importance in economics. If the supply curve for capital is upward sloping (as is more likely in a large economy like the U.S.) and shocks to demand are important (as they are likely to be over the business cycle), estimates of the user cost elasticity that rely on high-frequency movements in the variables will tend to be biased. Applying cointegration techniques to a small, open economy yields an estimate of the long-run user cost elasticity that is about 75% larger (in absolute value) than the best existing estimate. (c) 2006 Elsevier B.V. All rights reserved.