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dc.contributor.authorMadeira, Joãoen_GB
dc.date.accessioned2013-03-12T14:47:06Zen_GB
dc.date.accessioned2013-03-19T15:52:20Z
dc.date.issued2012en_GB
dc.description.abstractIn this paper I make use of Bayesian methods to estimate a firm-specific capital DSGE model with Calvo price and wage setting. This approach allows me to firmly conclude that firm-specific capital is highly relevant in improving the fit of New Keynesian models to the data as shown by a large increase in the value of the log marginal data density relative to the more conventional rental capital model. The introduction of firm-specific capital also has important implications for business cycle dynamics leading to increased persistence of aggregate variables and helps reduce the discrepancy between macro estimates of the NKPC and the observed frequent price adjustments in the micro data.en_GB
dc.identifier.urihttp://hdl.handle.net/10036/4459en_GB
dc.language.isoenen_GB
dc.publisherUniversity of Exeter Business Schoolen_GB
dc.relation.ispartofseriesEconomics Department Discussion Papers Series 12/04en_GB
dc.relation.urlhttp://business-school.exeter.ac.uk/research/areas/topics/economics/outputs/en_GB
dc.subjectNew Keynesian modelsen_GB
dc.subjectsticky pricesen_GB
dc.subjectDSGEen_GB
dc.subjectbusiness cyclesen_GB
dc.subjectfirm-specific capitalen_GB
dc.subjectBayesian estimationen_GB
dc.titleEvaluating the role of firm-specific capital in new Keynesian modelsen_GB
dc.typeWorking Paperen_GB
dc.date.available2013-03-12T14:47:06Zen_GB
dc.date.available2013-03-19T15:52:20Z
dc.identifier.issn1473-3307en_GB
exeter.confidentialfalseen_GB
dc.descriptionDiscussion Paperen_GB


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