The Resource Estimating the long-run user cost elasticity, Huntley Schaller., (electronic resource)

Estimating the long-run user cost elasticity, Huntley Schaller., (electronic resource)

Label
Estimating the long-run user cost elasticity
Title
Estimating the long-run user cost elasticity
Statement of responsibility
Huntley Schaller.
Creator
Contributor
Provider
Language
eng
Summary
The user cost elasticity is a parameter of central importance in economics, with implications for monetary policy, macroeconomic models, tax policy, growth and many other areas. If the supply curve for capital is upward sloping and shocks to demand area important (as they are likely to be over the business cycle), estimates of the user cost elasticity that rely on high-frequency movements in the variables will tend to be biased. This paper applies cointegration techniques to a small, open economy. The combination of exogeneity of user cost implied by the flat supply of capital curve for a small, open economy and appropriate correction for small sample bias yields an estimate of the long-run user cost elasticity which is about 75% larger (in absolute value) than the best existing estimate. In addition, the paper makes three further contributions: accounting for increases in depreciation (due to dramatic increases in computer use), estimating the long-run user cost elasticity for structures and the total capital stock, and disentangling the effects of capital goods prices, the real interest rate, and taxes. Keywords: User Cost Elasticity, Capital Stock, Investment. JEL Classification: E22, E44, H25
Member of
Additional physical form
Abstract in HTML and working paper for download in PDF available via World Wide Web at the Social Science Research Network.
Cataloging source
MYG
http://library.link/vocab/creatorName
Schaller, Huntley
Illustrations
illustrations
Index
no index present
Literary form
non fiction
Nature of contents
  • bibliography
  • technical reports
http://library.link/vocab/relatedWorkOrContributorName
  • Massachusetts Institute of Technology
  • Internet Archive
Series statement
Working paper series / Massachusetts Institute of Technology, Dept. of Economics
Series volume
working paper 02-31
Label
Estimating the long-run user cost elasticity, Huntley Schaller., (electronic resource)
Instantiates
Publication
Note
"July 19, 2002."
Bibliography note
Includes bibliographical references (p. 34-35)
Dimensions
28 cm.
Extent
44, [2] p.
Other physical details
ill.
Specific material designation
remote
System control number
  • (OCoLC)51807115
  • (CaSfIA)estimatinglongru00scha
  • (CaSfIA)001138689
Label
Estimating the long-run user cost elasticity, Huntley Schaller., (electronic resource)
Publication
Note
"July 19, 2002."
Bibliography note
Includes bibliographical references (p. 34-35)
Dimensions
28 cm.
Extent
44, [2] p.
Other physical details
ill.
Specific material designation
remote
System control number
  • (OCoLC)51807115
  • (CaSfIA)estimatinglongru00scha
  • (CaSfIA)001138689

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