<p>I'm trying to reproduce Gertler-Karádi (2013) model. How far-fetched is the thought to use the amount of corporate bond as an input of production?
<a href="https://i.sstatic.net/Cr77W.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/Cr77W.png" alt="enter image description here"></a>
Thank you in advance.</p>

CC BY-SA 3.0
2017-02-06T10:35:44.473Z
I think this is what Piketty does, if this is of any help. ("Corporations are included in private wealth through the market value of equities.", in the Appendix of http://piketty.pse.ens.fr/files/PikettyZucman2013WP.pdf )
user11629
CC BY-SA 3.0
2017-02-06T18:16:50.080Z
To make sure I understand you: you're asking whether or not it makes sense to add corporate bond holdings into the production function? As in, bond holdings can somehow be converted into a meaningful production input? Seems reasonable. However, I might consider lagged holdings as input for current period production, to offset the fact that bonds are less liquid that, for example, cash holdings.
123
CC BY-SA 3.0
2017-02-06T18:19:41.680Z
Thanks Ululo and 123 for the helpful comments! (Yes @123, this is exactly what I'm asking.)
Übel Yildmar
CC BY-SA 3.0
2017-02-06T18:27:20.400Z
Happy to help. And I apologize for all of the typos!
123
<macroeconomics><financial-economics><new-keynesian-economics>
Is it possible to proxy producers' capital with corporate bond in a macro model?
Übel Yildmar
# Is it possible to proxy producers' capital with corporate bond in a macro model?

(Asked by: username_0 on 2017-02-05)

I'm trying to reproduce Gertler-Karádi (2013) model. How far-fetched is the thought to use the amount of corporate bond as an input of production?
[![enter image description here](https://i.sstatic.net/Cr77W.png)](https://i.sstatic.net/Cr77W.png)
Thank you in advance.

**Tags:** macroeconomics, financial-economics, new-keynesian-economics

> **Comments:**
> **username_1**: I think this is what Piketty does, if this is of any help. ("Corporations are included in private wealth through the market value of equities.", in the Appendix of http://piketty.pse.ens.fr/files/PikettyZucman2013WP.pdf )  
> **username_2**: To make sure I understand you: you're asking whether or not it makes sense to add corporate bond holdings into the production function? As in, bond holdings can somehow be converted into a meaningful production input? Seems reasonable. However, I might consider lagged holdings as input for current period production, to offset the fact that bonds are less liquid that, for example, cash holdings.  
> **username_0**: Thanks Ululo and 123 for the helpful comments! (Yes @username_2, this is exactly what I'm asking.)  
> **username_2**: Happy to help. And I apologize for all of the typos!  

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## 0 answers

