Rousakis, Michael (2009) Capitalizing implementation cycles. In: 8th Conference on Research on Economic Theory and Econometrics, Tinos, 8-12 Jul 2009 (Unpublished)

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Abstract

Building on Shleifer (1986), capital is introduced to a world with temporary monopolies and no uncertainty, where agents share the same expectations about future and have perfect foresight. It is subsequently shown that, although �rms acquire patents at an exogenous, perfectly smooth rate, they may coordinate and implement these simultaneously if their expectations are accordingly formed, due to the presence of strategic complementarities. Then the economy can still grow in cycles, although investment is fully reversible and a storable commodity present, and, despite agents being able to perfectly borrow against their future earnings. This permits the study of the evolution of aggregate economic magnitudes along the balanced growth path under temporary monopolies. Most notably, capital-speci�c investment is shown to be countercyclical.

Item Type:	Conference Item (Paper)
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	Faculty of Social Sciences > Economics
Date:	9 July 2009
Status:	Not Peer Reviewed
Publication Status:	Unpublished
Version or Related Resource:	Rousakis, Michael (2009). Capitalizing implementation cycles. In: 2009 Association of Southern European Economic Theorists (ASSET)Conference. Istanbul, 30-31 2009. Rousakis, Michael (2010). Capitalizing implementation cycles. In: 2010 Annual Meeting of the Society for Economic Dynamics. Montreal, 8-10 Jul 2010.
Conference Paper Type:	Paper
Title of Event:	8th Conference on Research on Economic Theory and Econometrics
Type of Event:	Conference
Location of Event:	Tinos
Date(s) of Event:	8-12 Jul 2009
Related URLs:	Other Other
URI:	http://wrap.warwick.ac.uk/id/eprint/45600

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