A note on functional equivalence between intertemporal and multisectoral investment adjustment costs

dc.contributor.author	Ivashchenko, Sergey
dc.contributor.author	Mutschler, Willi
dc.date.accessioned	2016-11-23T12:56:25Z
dc.date.available	2016-11-23T12:56:25Z
dc.date.issued	2016
dc.description.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.	en
dc.identifier.uri	http://hdl.handle.net/2003/35392
dc.identifier.uri	http://dx.doi.org/10.17877/DE290R-17433
dc.language.iso	en	de
dc.relation.ispartofseries	Discussion Paper / SFB823;76, 2016	en
dc.subject	identification	en
dc.subject	investment adjustment costs	en
dc.subject	nonlinear DSGE	en
dc.subject	pruning	en
dc.subject	quadratic approximation	en
dc.subject.ddc	310
dc.subject.ddc	330
dc.subject.ddc	620
dc.title	A note on functional equivalence between intertemporal and multisectoral investment adjustment costs	en
dc.type	Text	de
dc.type.publicationtype	workingPaper	de
dcterms.accessRights	open access

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