Hi Dr. Evans, thank you for presenting!
Could you please explain more about the intuition of assuming that firm will adjust their capital stock quickly when the user cost of capital changes? How could firms quickly detect the changes of user cost of capital? Thank you!
Hi Dr. Evans, thank you for presenting! Could you please explain more about the intuition of assuming that firm will adjust their capital stock quickly when the user cost of capital changes? How could firms quickly detect the changes of user cost of capital? Thank you!