We study the effects of aggregate and idiosyncratic uncertainty on the entry of firms, total investment, and prices in … a competitive industry with irreversible investment. We first use standard dynamic programming methods to determine …

We study the effects of aggregate and idiosyncratic uncertainty on the entry of firms, total investment, and prices in … a competitive industry with irreversible investment. We first use standard dynamic programming methods to determine …

This paper presents an overview of current models of consumption and investment behavior. First, the stochastic … critical discussion of the Ricardia Equivalence Theorem. Investment behavior is analyzed using a dynamic optimization model of … theory. The model is then used to analyze the interaction of corporate taxes, inflation and investment and also to analyze …

In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms … aggregate investment obtained from adding up the actions of firms subject to aggregate and idiosyncratic shocks, is highly non … postwar sectoral U.S. manufacturing equipment and structures investment. For a given sequence of aggregate shocks, the …

Most of the empirical work on investment is based on the existence of a relation between investment and the expected … demand and technology and examine its relation to investment.We find that variations in this present value series are … value series, although significantly related to investment, still leaves unexplained a large, serially correlated fraction …

The 90s have witnessed a revival in economists' interest and hope of explaining" aggregate and microeconomic investment … of the investment problem also has been significant. " The concept of sunk costs is at the center of modern theories. The … implications of these costs for" investment go well beyond the neoclassical response to the irreversible-technological friction …

Most of the empirical work on investment is based on the existence of a relation between investment and the expected … demand and technology and examine its relation to investment.We find that variations in this present value series are … value series, although significantly related to investment, still leaves unexplained a large, serially correlated fraction …

In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms …-of-sample criteria, we find that the model performs substantially better than the standard linear models of investment for postwar … sectoral U.S. manufacturing equipment and structures investment data …

The 90s have witnessed a revival in economists' interest and hope of explaining" aggregate and microeconomic investment … of the investment problem also has been significant. " The concept of sunk costs is at the center of modern theories. The … implications of these costs for" investment go well beyond the neoclassical response to the irreversible-technological friction …

In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms … aggregate investment obtained from adding up the actions of firms subject to aggregate and idiosyncratic shocks, is highly non … postwar sectoral U.S. manufacturing equipment and structures investment. For a given sequence of aggregate shocks, the …