NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Alban Moura

Toulouse School of Economics
University of Toulouse
Manufacture des Tabacs
21 Allee de Brienne
31000 Toulouse, FRANCE

E-Mail: Alban.Moura@TSE-fr.eu

NBER Working Papers and Publications

October 2014Reexamining the Cyclical Behavior of the Relative Price of Investment
with Paul Beaudry, Franck Portier: w20550
The cyclical behavior of the relative price of investment goods plays an important role in many modern macroeconomic models. In this paper we examine the behavior of several measures of the relative price of investment goods for the U.S. economy over the last fifty years. In particular, we examine whether there are robust cyclical patterns, whether results differ by sub-sample and whether the nature of the deflator matters. Our main result is that there is no robust evidence that this relative price is countercyclical in the data. In fact, for the recent (post-Volcker) period, the relative price of investment appears predominantly procyclical. When looking at more disaggregated series, most measures are procyclical, a few acyclical, and only the price of equipment is significantly counte...

Published: Beaudry, Paul & Moura, Alban & Portier, Franck, 2015. "Reexamining the cyclical behavior of the relative price of investment," Economics Letters, Elsevier, vol. 135(C), pages 108-111. citation courtesy of

 
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