TY  - JOUR
AU  - Cooper,Russell
AU  - Johri,Alok
TI  - Dynamic Complementarities: A Quantitative Analysis
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5691
PY  - 1996
Y2  - July 1996
UR  - http://www.nber.org/papers/w5691
L1  - http://www.nber.org/papers/w5691.pdf
N1  - Author contact info:
Russell Cooper
Department of Economics
The Pennsylvania State University
611 Kern
State College, PA 16802
E-Mail: russellcoop@gmail.com

Alok Johri
Department of Economics
McMaster University
1280 Main Street West
Hamilton, ON CANADA  L8S 4M4
E-Mail: johria@mcmaster.ca
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.  Our quantitative analysis identifies empirically relevant dynamic complementarities as a source of propagation for both technology and taste shocks.
ER  -