impact of a shock can be boiled down into two components: its "pure" technology effect; and its effect on allocative …

product market, concerning in particular entry barriers, are negatively related to investment. The implications of our … analysis are clear: regulatory reforms, especially those that liberalize entry, are very likely to spur investment …

We analyze private fixed investment in the U.S. over the past 30 years. We show that investment is weak relative to … two broad categories of explanations: theories that predict low investment because of low Q, and theories that predict low … investment despite high Q. We argue that the data does not support the first category, and we focus on the second one. We use …

We provide empirical evidence that a positive shock to technology drives per capita hours worked, consumption …, investment, average productivity and output up. This evidence contrasts sharply with the results reported in a large and growing … literature that argues, on the basis of aggregate data, that per capita hours worked fall after a positive technology shock. We …