Work

The workweek of capital and its cyclical implications

Year: 1988

Type: article

Abstract: The neoclassical growth model studied in the Kydland and Prescott ‘Time to Build’ paper is modified to permit the capital utilization rate to vary. The effect of this modification is to increase the amplitude of the aggregate fluctuations predicted by theory as the equilibrium response to technological shocks. If, following Solow, the changes in output not accounted for by changes in the labor and tangible capital inputs are interpreted as being the technology shocks, the statistical properties of the fluctuations in the postwar United States economy are close in magnitude and nature to those predicted by theory.

Source: Journal of Monetary Economics

DOI: 10.1016/0304-3932(88)90035-9

Authors: Finn E. Kydland, Edward C. Prescott

Institutions: Carnegie Mellon University, University of Minnesota, Federal Reserve Bank of Minneapolis

Language: English

Topic: Economic Growth and Productivity

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2091504900

FWCI: 19.49

Cites: 15

Cited by: 145

Related to: 10