TY - JOUR
T1 - Dynamic complementarities
T2 - A quantitative analysis
AU - Cooper, Russell W.
AU - Johri, Alok
N1 - Funding Information:
Conversations with Paul Beaudry, Steve Durlauf, John Haltiwanger, Robert King, Peter Klenow and Jeff Miron on this and related topics are gratefully acknowledged as is financial support from the National Science Foundation and the Arts Research Board, McMaster University. Comments and suggestions from participants at the 1995 and 1996 NBER Macro Complementarities Group meetings and seminar participants at the Federal Reserve Bank of St. Louis and University of Waterloo are also appreciated. Finally, Steve Williamson and an anonymous referee provided helpful comments which enhanced both the content and style of this paper.
PY - 1997/9
Y1 - 1997/9
N2 - This paper considers the importance of dynamic complementarities as an endogenous source of propagation in a dynamic stochastic economy. Dynamic complementarities link the stocks of human and organizational capital, which are influenced by past levels of economic activity, to current levels of productivity. We supplement an otherwise standard dynamic business cycle model with both contemporaneous and dynamic complementarities. The model is calibrated using estimates of these effects from both micro and aggregate data. Our quantitative analysis identifies empirically relevant dynamic complementarities as a source of propagation for both technology and taste shocks.
AB - This paper considers the importance of dynamic complementarities as an endogenous source of propagation in a dynamic stochastic economy. Dynamic complementarities link the stocks of human and organizational capital, which are influenced by past levels of economic activity, to current levels of productivity. We supplement an otherwise standard dynamic business cycle model with both contemporaneous and dynamic complementarities. The model is calibrated using estimates of these effects from both micro and aggregate data. Our quantitative analysis identifies empirically relevant dynamic complementarities as a source of propagation for both technology and taste shocks.
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U2 - 10.1016/S0304-3932(97)00032-9
DO - 10.1016/S0304-3932(97)00032-9
M3 - Article
AN - SCOPUS:0031234562
SN - 0304-3932
VL - 40
SP - 97
EP - 119
JO - Journal of Monetary Economics
JF - Journal of Monetary Economics
IS - 1
ER -