International business cycles and the relative price of investment goods

Article, Preprint OPEN
Parantap Basu; Christoph Thoenissen;
(2009)
  • Journal: Canadian Journal of Economics,volume 44,issue 2 May,pages580-606
  • Subject: Investment frictions, investment specific technological progress, total factor productivity, relative price of investment goods terms of trade
    • jel: jel:E32 | jel:F41 | jel:E22

Is the relative price of investment goods a good proxy for investment frictions? We model this relative price in a flexible price international economy with two fundamental shocks, namely the total factor productivity (TFP) shock and the investment specific technology (... View more
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