• Firm-Specific Capital and Welfare 

      Sveen, Tommy; Weinke, Lutz (Working Papers;4/2006, Working paper, 2006)
      What are the consequences for monetary policy design implied by the fact that price setting and investment takes typically place simultaneously at the firm level? To address this question we analyze simple (constrained) ...
    • Firm-Specific Capital, Nominal Rigidities, and the Taylor Principle 

      Sveen, Tommy; Weinke, Lutz (Working Papers;6/2006, Working paper, 2006)
      In the presence of firm-specific capital the Taylor principle can generate multiple equilibria. Sveen and Weinke (2005b) obtain that result in the context of a Calvo-style sticky price model. One potential criticism is ...
    • Firm-Specific Investment, Sticky Prices, and the Taylor Principle 

      Sveen, Tommy; Weinke, Lutz (Working Papers;12/2004, Working paper, 2004)
      According to the Taylor principle a central bank should adjust the nominal interest rate by more than one for one in response to changes in current inflation. Most of the existing literature supports the view that by ...
    • Is Lumpy Investment Really Irrelevant for the Business Cycle? 

      Sveen, Tommy; Weinke, Lutz (Working Papers;6/2005, Working paper, 2005)
      Smoothness in aggregate capital accumulation is a necessary condition for New-Keynesian (NK) models to imply a quantitatively relevant monetary transmission mechanism (see, e.g., Woodford 2005). Can that aggregate smoothness ...
    • Lumpy Investment and State-Dependent Pricing in General Equilibrium 

      Reiter, Michael; Sveen, Tommy; Weinke, Lutz (Working Papers;5/2009, Working paper, 2009)
      The lumpy nature of plant-level investment is generally not taken into account in the context of monetary theory (see, e.g., Christiano et al. 2005 and Woodford 2005). We formulate a generalized (S,s) pricing and investment ...
    • New Perspectives on Capital and Sticky Prices 

      Sveen, Tommy; Weinke, Lutz (Working Papers;3/2004, Working paper, 2004)
      We model capital accumulation in a dynamic New-Keynesian model with staggered price setting à la Calvo. It is assumed that firms do not have access to a rental market for capital. We compare our model with an alternative ...
    • Pitfalls in the Modelling of Forward-Looking Price Setting and Inverstment Behavior 

      Sveen, Tommy; Weinke, Lutz (Working Papers;1/2004, Working paper, 2004)
      We discuss some difficulties in a dynamic New-Keynesian model with staggered price setting à la Calvo and a convex capital adjustment cost at the firm level, as considered by Woodford (2003, Ch. 5). It is shown that the ...
    • Technology and the Two Margins of Labor Adjustment: A New Keynesian Perspective 

      Furlanetto, Francesco; Sveen, Tommy; Weinke, Lutz (Working papers;7/2018, Working paper, 2018)
      Canova et al. (2010 and 2012) estimate the dynamic response of labor market variables to technological shocks. They show that investment-speci c shocks imply almost exclusively an adjustment along the intensive margin ...
    • The Taylor Principle in a Medium-Scale Macroeconomic Model 

      Sveen, Tommy; Weinke, Lutz (Working Papers;9/2010, Working paper, 2010)
      The Taylor Principle is often used to explain macroeconomic stability (see, e.g., Clarida et al. 2000). The reason is that this simple principle guarantees determinacy, i.e., local uniqueness of rational expectations ...