TY  - JOUR
AU  - Caplin,Andrew
AU  - Leahy,John
TI  - Durable Goods Cycles
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6987
PY  - 1999
Y2  - February 1999
UR  - http://www.nber.org/papers/w6987
L1  - http://www.nber.org/papers/w6987.pdf
N1  - Author contact info:
Andrew Caplin
Department of Economics
New York University
19 W. 4th Street, 6th Floor
New York, NY  10012
Tel: 212/998-8950
Fax: 212/995-3932
E-Mail: andrew.caplin@nyu.edu

John V. Leahy
Department of Economics
New York University
19 W. 4th Street, 6th Floor
New York, NY  10012
Tel: 212/992-9770
E-Mail: john.leahy@nyu.edu
AB  - We show that a straight forward approximation of the distribution of durable goods holdings gives rise to a tractable equilibrium (S,s) model of durable demand. We analyze both competitive and monopoly supply. We show that equilibrium interactions lead to elongated impulse responses in demand, to procyclical markups in response to demand shocks, and to countercyclical markups in response to cost shocks.
ER  -