Home Production Meets Time to Build
Posted: 15 Oct 2001
Abstract
An innovation in this paper is to introduce a time-to-build technology for the production of market capital into a model with home production. Our main finding is that the two anomalies that have plagued all household production models--the positive correlation between business and household investment, and household investment's leading business investment over the business cycle--are resolved when time to build is added.
Suggested Citation: Suggested Citation
Gomme, Paul and Kydland, Finn E. and Rupert, Peter, Home Production Meets Time to Build. Journal of Political Economy, Vol. 109, October 2001, Available at SSRN: https://ssrn.com/abstract=280274
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.