Economics, Econometrics and Finance
4 years ago

Depreciation shocks revealed as key drivers of economic fluctuations in new study.

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RePEc: Research Papers in Economics
New perspectives on depreciation shocks as a source of business cycle fluctuations
Francesco Furlanetto, Martin Seneca

Paper Summary

Depreciation shocks can actually impact the economy more than previously thought. By looking at how assets lose value over time, researchers found that these shocks can play a big role in economic ups and downs. Factors like prices staying the same and the shock lasting for a while are key in making this happen.

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