and investment, we are able to capture many of the key empirical properties of Germany and Japan's postwar transitions … capital-output ratio, rising rates of investment and employment, and moderate rates of return to capital …

stock market bubble by issuing new equity. The bubble reduces the user-cost of capital and increase real investment. Using … real investment …

We embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine … mean-preserving spread in the productivity of investment raises aggregate investment, productivity, and output. Increases … in uncertainty have important dynamic implications, causing sustained increases in investment and hours and a medium …

investment at the firm-level. A large body of recent empirical work attributes these findings to capital market imperfections … variables may appear as an explanatory variable for investment if they contain information about the expected marginal value of … capital. In this paper, we show how structural models of investment with costly external finance can be used to identify and …

investment; the impact of uncertainty on investment occurs primarily through changes in credit spreads; and innovations in credit … spreads have a strong effect on investment, irrespective of the level of uncertainty. These findings raise a question … financial shocks. By influencing the effective supply of credit, both types of shocks exert a powerful effect on investment and …