TY  - JOUR
AU  - Abel,Andrew B.
TI  - Dynamic Behavior of Capital Accumulation in a Cash-in-Advance Model
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1549
PY  - 1986
Y2  - 1986
UR  - http://www.nber.org/papers/w1549
L1  - http://www.nber.org/papers/w1549.pdf
N1  - Author contact info:
Andrew B. Abel
Wharton School
University of Pennsylvania
2315 Steinberg Hall - Dietrich Hall
Philadelphia, PA  19104-6367
Tel: 215/898-4801
Fax: 215/573-7244
E-Mail: abel@wharton.upenn.edu
AB  - This paper analyzes the dynamic behavior of capital accumulationin Stockman's (1981) cash-in-advance model. If the cash-in-advance constraint applies only to consuittion, then money is superneutral along the transition path as well as in the long run. Alternatively, if the cash-in-advance constraint applies to gross investment as well as consumption, then a permanent increase in the rate of monetary growth reduces the steady state capital stock. The effect on the speed of adjustment depends on the sign of a certain simple function of the parameters of preferences and technology.
ER  -