Investment adjustment costs and growth dynamics
构建了一个货币内生增长代际交叠模型，其中投资调整成本是生产性政府支出的负函数，央行以通胀为目标。研究发现增长动态出现，且调整成本对公共支出的反应强度决定了单一或多重均衡的存在。
We develop a monetary endogenous growth overlapping generations model characterized by investment adjustment costs as a negative function of productive government expenditures, and an inflation-targeting central bank. We show that growth dynamics arise, otherwise not possible in a standard monetary endogenous growth model with a money growth-rule and an exogenous adjustment cost parameter. Furthermore, hinging crucially on the strength of the response of the adjustment cost to productive public spending, single or multiple equilibria emerge, with the high-growth (low-growth) equilibrium in the latter case being stable (unstable), but locally indeterminate (locally determinate). • Monetary endogenous growth OLG model with inflation-targeting. • Investment adjustment costs as a negative function of government expenditures. • Growth dynamics arise. • Single or multiple equilibria emerge. • Depends on of the response strength of the adjustment cost to public spending.