Authors: | Ivashchenko, Sergey Mutschler, Willi |
Title: | A note on functional equivalence between intertemporal and multisectoral investment adjustment costs |
Language (ISO): | en |
Abstract: | Kim (2003, JEDC) shows functional equivalence between intertemporal and multisectoral investment adjustments costs in a linearized RBC model. From an identification point of view, two parameters are not separately distinguishable, they enter as a sum into the linearized solution. We demonstrate that estimating the quadratic approximation of the model provides means to extract more information on the structural parameters from data and thus estimate both parameters that are unidentiable under the log-linearized model. |
Subject Headings: | identification investment adjustment costs nonlinear DSGE pruning quadratic approximation |
URI: | http://hdl.handle.net/2003/35392 http://dx.doi.org/10.17877/DE290R-17433 |
Issue Date: | 2016 |
Appears in Collections: | Sonderforschungsbereich (SFB) 823 |
Files in This Item:
File | Description | Size | Format | |
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DP_7616_SFB823_Ivashchenko_Mutschler.pdf | DNB | 388.61 kB | Adobe PDF | View/Open |
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