Arbeitspapier
Investment dynamics with information costs
Investment in physical capital at the micro level is infrequent and large, or lumpy. The most common explanation for this is that firms face non-convex physical adjustment costs. The model developed in this paper shows that information costs make investment lumpy at the micro level, even in the absence of non-convex adjustment costs. When collecting and processing information is costly, the firm optimally chooses to do it sporadically and to be inactive most of the time. This behavior results in infrequent and possibly large capital adjustments. The model fits plant-level investment rate moments well, and it also matches some higher order moments of aggregate investment rates.
- Sprache
-
Englisch
- ISBN
-
978-952-6699-34-9
- Erschienen in
-
Series: Bank of Finland Research Discussion Papers ; No. 18/2013
- Klassifikation
-
Wirtschaft
Firm Behavior: Theory
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Investment; Capital; Intangible Capital; Capacity
- Thema
-
investment dynamics
information costs
inattentiveness
lumpy investment
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Verona, Fabio
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Verona, Fabio
- Bank of Finland
Entstanden
- 2013
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