; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Models of Energy Use: Putty-Putty vs. Putty-Clay"; ; "batchuser@example.com"; "Kehoe, Patrick J.", "Atkeson, Andrew"; "Federal Reserve Bank of Minneapolis"; "Q41 - Energy: Demand and Supply; Prices"; "Energy use is inelastic in time-series data, but elastic in international cross-section data. Two models of energy use reproduce these elasticities: a putty-putty model with adjustment costs developed by Pindyck and Rotemberg (1983) and a putty-clay model. In the Pindyck-Rotemberg model, capital and energy are highly complementary in both the short run and the long run. In the putty-clay model, capital and energy are complementary in the short run, but substitutable in the long run. We highlight the differences in the cross-section implications of the models by considering the effect of an energy tax on output in both models. In the putty-putty model, an energy tax that doubles the price of energy leads to a fall in output in the long run of 33%. In contrast, the same tax in the putty-clay model leads to a fall in output of only 5.3%."^^; "1997-03"; "2019-08-21T00:31:15.418959098+00:00"^^; "https://doi.org/10.21034/sr.230"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Thu Nov 7 22:03:39 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "393", "39"; "Staff report (Federal Reserve Bank of Minneapolis. Research Department)"; "230"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _American Economic Review_ (Vol. 89, No. 4, September 1999, pp. 1028-43) https://doi.org/10.1257/aer.89.4.1028. "^^; ; "Publication" . ; .