data from the U.S. and Germany in structural VARs, we find that positive innovations to business uncertainty lead to …

expectations regarding endogenous outcomes can emerge as a purely self-fulfilling equilibrium property when investment choices are … significant heterogeneity in real and financial investment choices, even in the absence of any heterogeneity in individual … fluctuations in aggregate investment and asset prices, including fluctuations that are smoother than those often associated with …

explanatory role in investment equations, they generally achieve identification of structural parameters only by imposing … and financial.The real impulse appears in our statistical evidence as an autonomous innovation to investment in structures … speculation and overbuilding, and Schumpeterian waves of innovation.The financial impulse works through the effect on investment …

shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …

investment-specific productivity. We document that in U.S. postwar quarterly data total factor productivity (TFP) and the … relative price of investment are cointegrated. We show theoretically that TFP and the relative price of investment are … cointegrated if and only if neutral and investment-specific productivity share a common stochastic trend. We econometrically …

the end of 2007 as its only impulse - produces time series for aggregate labor usage, consumption, investment, and real … financial market - has investment fall steeply during the recession not because of any distortions with the supply of capital …

probability of disaster leads to a collapse of investment and a recession, an increase in risk spreads, and a decrease in the … of business cycle dynamics, especially sharp downturns in investment and output such as 2008-IV …

rigidities: investment adjustment costs, variable capacity utilization, habit formation in consumption, and habit formation in … investment-specific shocks, and government spending shocks. Each of these shocks is buffeted by four types of structural …

of investment requires a new idea, an "option". When options are scarce, new capital is harder to put in place and the … gradually, as options are used up. Because investment represents an exercise of options, it has an intertemporal substitution …