. Further, while during earlier parts of our sample both a slowdown in consumption and investment growth contribute to a … reduction of GDP growth, during later parts, only the investment reaction contributes to the GDP slowdown. A variance … decomposition for consumption growth shows that the contribution of stock market volatility becomes negligible as we go from earlier …

This paper examines the responses of private consumption, residential investment, and business investment in 11 EU … structure. We are thus able to document the importance of a wealth/balance sheet channel for private consumption and residential … investment and an equity finance channel for business investment. Third, for a given country, housing shocks have a much greater …

use behavioral economics to improve some of the underpinnings of the New Keynesian model—specifically, consumption, the …

It has long been argued that the anticipations of some future event will impact current consumption and well-being in … model, by assuming that in addition to his own current consumption, an agent’s current utility depends upon a reference … consumption level that is based on expected future consumption. Two alternative specifications of the anticipated future …

-driven business cycle hypothesis for the case of aggregate investment. We construct a survey-based measure of technology shocks to … gauge their contribution to short-run investment fluctuations. We estimate an upper bound for the contribution of technology … shocks to the variance of the aggregate investment growth rate of 19 percent. The larger part of fluctuations in aggregate …

-movement and account for approximately, 31%, 21%, 43%, 29% in the variance of output, investment, hours worked, and consumption … its propagation and quantitative importance. Anticipated increases in TFP expected to arrive in the consumption sector are … expansionary while those in the investment sector are broadly contractionary. Our results indicate a significant role of TFP news …