Dynamic complementarities: A quantitative analysis

Russell W. Cooper, Alok Johri

Research output: Contribution to journalArticle

28 Citations (Scopus)

Abstract

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.

Original languageEnglish (US)
Pages (from-to)97-119
Number of pages23
JournalJournal of Monetary Economics
Volume40
Issue number1
DOIs
StatePublished - Sep 1997

Fingerprint

Complementarity
Quantitative analysis
Propagation
Human capital
Micro data
Productivity
Business cycle model
Economic activity
Stochastic dynamics
Organizational capital
Aggregate data

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

Cite this

@article{245a01a854574cf8a50196df6ebcea2c,
title = "Dynamic complementarities: A quantitative analysis",
abstract = "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.",
author = "Cooper, {Russell W.} and Alok Johri",
year = "1997",
month = "9",
doi = "10.1016/S0304-3932(97)00032-9",
language = "English (US)",
volume = "40",
pages = "97--119",
journal = "Journal of Monetary Economics",
issn = "0304-3932",
publisher = "Elsevier",
number = "1",

}

Dynamic complementarities : A quantitative analysis. / Cooper, Russell W.; Johri, Alok.

In: Journal of Monetary Economics, Vol. 40, No. 1, 09.1997, p. 97-119.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Dynamic complementarities

T2 - A quantitative analysis

AU - Cooper, Russell W.

AU - Johri, Alok

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.

UR - http://www.scopus.com/inward/record.url?scp=0031234562&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0031234562&partnerID=8YFLogxK

U2 - 10.1016/S0304-3932(97)00032-9

DO - 10.1016/S0304-3932(97)00032-9

M3 - Article

AN - SCOPUS:0031234562

VL - 40

SP - 97

EP - 119

JO - Journal of Monetary Economics

JF - Journal of Monetary Economics

SN - 0304-3932

IS - 1

ER -