Sunk investments, the churn, and macroeconomics.: An article from: NBER Reporter

This digital document is an article from NBER Reporter, published by National Bureau of Economic Research, Inc. on March 22, 1997. The length of the article is 2297 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: Studies have revealed that the mechanics of aggregate fluctuations are quite different from those of representative agent model and that an active churn requires a massive flow of transactions and an ongoing process of contracting and renegotiation. These conditions demonstrate the close connection between macroeconomics and the active microeconomic world. Rent appropriation also has significant macroeconomic implications, since the market system is expected to adjust to help partly compensate the appropriated factors, providing a highly efficient macroeconomic solution to the unresolved microeconomic contracting problem.

Citation Details
Title: Sunk investments, the churn, and macroeconomics.
Author: Ricardo J. Caballero
Publication:NBER Reporter (Magazine/Journal)
Date: March 22, 1997
Publisher: National Bureau of Economic Research, Inc.
Page: 9(3)

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