Template-type: ReDIF-Paper 1.0
Author-Name: Alfonso Novales Cinca 

Author-Workplace-Name: Departamento de Fundamentos del Análisis Económico II (Economía Cuantitativa)
Title: The role of adjusment costs in interest rate determination 
Abstract: We study in this paper the equilibrium influence of adjustment costs of capital on interest rates determination. 
	Considering endogenous interest rates in optimal capital accumulation models introduces nonlinearities which 
	together with expectations of future variables make the model hard to analyze. We use here a solution method 
	that has recently been preposed in the literature, to show that the model is able to reproduce some of the 
	correlations among output, consumption, interest rates and capital that can be observed in actual time series data.

Keywords: Ajustes del capital, Acumulación de capital, Series temporales.
Length: 32 pages 
Creation-Date: 1986 
Number: 86-04 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doctra86-04.txt
File-URL: https://eprints.ucm.es/id/eprint/20653/1/8604.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doctra:86-04