We study whether aggregation residuals in U.S. private investment in information technology (IT) exhibit a predictable …

I study the effect of the trending relative price of investment on the optimal target rate of inflation. The price of … investment has a decreasing trend relative to that of consumption because of investment-specific technological progress. If the … prices of investment goods are sticky, a benevolent planner puts weight on stabilizing those prices, which works to raise the …

Consumption and investment comove over the business cycle in response to shocks that permanently move the price of … investment. The interpretation of these shocks has relied on standard one-sector models or on models with two or more sectors … commingling of sectoral outputs in the assembly of final consumption and investment goods, in line with the U.S. Input …