Maintenance Labor and Indeterminacy under Increasing Returns to Scale
2004/09/21
研討會日期 : 2004-09-21
時間 : 15:00
主講人 : Prof. Jang-Ting Guo
地點 : C棟103室
演講者簡介 : Prof. Jang-Ting Guo Ph.D. in Economics，University of California at Los Angeles (1993)。
現為Associate Professor，University of California at Riverside。
其主要研究領域為Macroeconomics。
演講摘要 : This paper develops a one-sector real business cycle model in which private firms allocate competitively-supplied household labor to either new goods production or maintenance of existing capital. As in Wen (1998, Journal of Economic Theory, 81, 7-36), the model also allows for endogenous capital utilization. While more-intensive capital utilization leads to faster depreciation, an increase in maintenance labor has the opposite effect. We show that as the share of maintenance labor in GDP rises, the required degree of increasing returns for local indeterminacy declines monotonically. When the model is calibrated to match empirical evidence on the relative size of maintenance and repair activity, we find that local indeterminacy (and belief-driven fluctuations) can occur with a very mild and empirically-plausible degree of increasing returns–around 1.034.
