Equilibrium in a durable goods market with lumpy adjustment

Journal of Economic Theory

Volumn 128, Issue 1, 2006, Pages 187-213

  Caplin, Andrew ^a,b   Leahy, John ^a,b  

^a NEW YORK UNIVERSITY   (United States)

^b NATIONAL BUREAU OF ECONOMIC RESEARCH   (United States)

Author keywords

Durable goods; Equilibrium; S,s policies

Indexed keywords

EID: 33646471543     PISSN: 00220531     EISSN: 10957235     Source Type: Journal    
DOI: 10.1016/j.jet.2004.12.005     Document Type: Article

References (41)

1. Adda J., and Cooper R. Balladurette and jeppette. a discrete approach. J. Polit. Economy 108 (2000) 778-806
2. J. Adda, R. Cooper, The dynamics of car sales: a discrete choice approach, mimeo, Boston University, 2000.
3. Attanasio O. Consumer durables and inertial behavior. estimation and aggregation of (S,s) rules for automobile purchases. Rev. Econ. Stud. 67 (2000) 667-697
4. Arrow K., Harris T., and Marschak J. Optimal inventory policy. Econometrica 19 (1951) 205-272
5. Bar-Ilan A., and Blinder A. Consumer durables. evidence on the optimality of usually doing nothing. J. Money, Credit Banking 24 (1996) 258-272
6. M. Baxter, Are consumer durables important for business cycles?, mimeo, University of Rochester, 1992.
7. Benabou R. Search, price setting and inflation. Rev. Econ. Stud. 55 (1988) 353-376
8. Benabou R. Inflation and efficiency in search markets. Rev. Econ. Stud. 59 (1992) 299-330
9. Bertola G., and Caballero R. Kinked adjustment costs and aggregate dynamics. In: Blanchard O., and Fischer S. (Eds). NBER Macroeconomics Annual 1990 (1990), MIT Press, Cambridge, MA 237-288
10. Bils M. Pricing in a costumer market. Quart. J. Econ. 104 (1989) 699-718
11. Bils M., and Klenow P. Using consumer theory to test competing business cycle models. J. Polit. Economy 106 (1998) 233-261
12. Blanchard O., and Melino A. The cyclical behavior of prices and quantities. the case of the automobile market. J. Monet. Econ. 17 (1986) 379-407
13. A.S. Blinder, Retail inventory behavior and business fluctuations, Brookings Papers on Economic Activity, 1981, pp. 443-505.
14. Caballero R. Expenditure on durable goods. a case for slow adjustment. Quart. J. Econ. 105 (1990) 725-743
15. Caballero R. Durable goods. an explanation for their slow adjustment. J. Polit. Economy 101 (1993) 351-384
16. Caballero R., and Engel E. Dynamic (S,s) economies. Econometrica 59 (1991) 1659-1686
17. Caballero R., and Hammour M. On the timing and efficiency of creative destruction. Quart. J. Econ. 111 (1996) 805-852
18. Caplin A., and Leahy J. State-dependent pricing and the dynamics of money and output. Quart. J. Econ. 106 (1991) 683-708
19. Caplin A., and Leahy J. Aggregation and optimization with state-dependent pricing. Econometrica 65 (1997) 601-627
20. Caplin A., and Spulber D. Menu costs and the neutrality of money. Quart. J. Econ. 102 (1986) 703-725
21. Carroll C., and Dunn W. Unemployment expectations, jumping (S,s) triggers, and household balance sheets. In: Bernanke B., and Rotemberg J. (Eds). NBER Macroeconomics Annual 1997 (1997), MIT Press, Cambridge, London 165-217
22. Chavalier J., and Scharfstein D. Capital market imperfections and countercyclical markups. Amer. Econ. Rev. 86 (1996) 703-725
23. Dotsey M., King R., and Wolman A. State dependent pricing and the general equilibrium dynamics of money and output. Quart. J. Econ. 104 (1999) 655-690
24. Eberly J. Adjustment of consumers' durables stocks. evidence from automobile purchases. J. Polit. Economy 102 (1994) 403-436
25. Fisher J., and Hornstein A. (S,s) inventory policies in general equilibrium. Rev. Econ. Stud. 67 (2000) 117-145
26. Greenspan A., and Cohen D. Motor vehicle stocks, scrappage, and sales. Rev. Econ. Statist. 81 (1999) 369-383
27. Grossman S., and Laroque G. Asset pricing and optimal portfolio choice in the presence of illiquid durable consumption goods. Econometrica 58 (1990) 25-51
28. Kahn C. The durable goods monopolist and consistency with increasing costs. Econometrica 54 (1986) 275-294
29. Krussel P., and Smith A. Income and wealth heterogeneity in the macroeconomy. J. Polit. Economy 106 (1998) 867-898
30. J. Leahy, J. Zeira, The timing of purchases and aggregate fluctuations, NBER Working Paper No. 7672, 2000.
31. Mankiw N.G. Hall's consumption hypothesis and the real interest rate. J. Monet. Econ. 10 (1982) 417-425
32. Murphy K., Shleifer A., and Vishny R. Building blocks of market clearing business cycle models. In: Blanchard O., and Fischer S. (Eds). NBER Macroeconomics Annual 1989 (1989), MIT Press, Cambridge, MA, London 247-287
33. J. Parker, The timing of purchases, market power, and economic fluctuations, mimeo, University of Michigan Business School, 1997.
34. Phelps E., and Winter S. Optimal price policy under atomistic competition. In: Phelps E. (Ed). Foundations of Inflation and Employment Theory (1970), Norton, New York
35. R. Porter, P. Sadler, Patterns of trade in the market for used durables: theory and evidence, NBER Working Paper No. 7149, 1999.
36. Rotemberg J., and Saloner G. A supergame-theoretic model of price wars during booms. Amer. Econ. Rev. 76 (1986) 390-407
37. Rotemberg J., and Woodford M. Markups and the business cycle. In: Blanchard O., and Fischer-Stanley S. (Eds). NBER Macroeconomics Annual 1991 (1991), MIT Press, Cambridge, London 63-129
38. J. Rotemberg, M. Woodford, The cyclical behavior of prices and costs, in: J. Taylor, M. Woodford (Eds.), Handbook of Macroeconomics, vol. 1B, Handbooks in Economics, vol. 15, Elsevier Science, Amsterdam, 1999, pp. 1051-1135.
39. Sargent T. The Conquest of American Inflation (1999), Princeton University Press, Princeton
40. Sobel J. Durable goods monopoly with entry of new consumers. Econometrica 59 (1991) 1455-1485
41. Sobel J., and Takahashi I. A multi-stage model of bargaining. Rev. Econ. Stud. 50 (1983) 411-426