Moore, Bartholomew John; Schaller, Huntley; Funke, Michael - HWWA Workshop on Uncertainty and Factor Demands <1999, …; … - 1999
This paper introduces a new approach to understanding investment. The distinctive feature of our approach is that shocks to the economic fundamentals have both persistent and transitory components, and that firms must disentangle the persistent from the transitory shocks. The model generates...
