caa a22 4500 39754474X CHVBK 20180308164736.0 cr unu---uuuuu 161202e199604 xx s 000 0 eng 10.2307/2297849 doi (NATIONALLICENCE)oxford-10.2307/2297849 Gale Douglas Boston University Delay and Cycles [Elektronische Daten] [Douglas Gale] When the profitability of investment depends on the general level of economic activity, entrepreneurs have an incentive to delay investments during a recession. Endogenous delay thus prolongs the recovery from a recession and heightens the effect of the boom. This paper describes a dynamic model that exhibits both delay and cycles and develops methods for analysing the role of delay in propogating business cycles. A number of interesting characteristics of the cycle are revealed. First, the effect of delay is asymmetric: it lengthens the recovery but not the downturn. Second, delay can increase the amplitude and typically reduces the frequency of the cycle. Third, it can reduce the average level of activity, but it achieves this effect by prolonging the recession rather than by reducing the amplitude of the cycle. The welfare effects of delay are ambiguous, however. © 1996 The Review of Economic Studies Limited The Review of Economic Studies Wiley-Blackwell 63/2(1996-04), 169-198 0034-6527 63:2<169 1996 63 restud https://doi.org/10.2307/2297849 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.2307/2297849 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Gale Douglas Boston University NATIONALLICENCE 773 0- The Review of Economic Studies Wiley-Blackwell 63/2(1996-04), 169-198 0034-6527 63:2<169 1996 63 restud Metadata rights reserved CC BY-NC-4.0 http://creativecommons.org/licenses/by-nc/4.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-oxford