discount rates and thereby raise real investment. We analyze the macroeconomic implications of sticky discount rates using a … New Keynesian model. The model naturally generates investment-consumption comovement in response to household demand … shocks and higher investment in response to government spending. Sticky discount rates imply that inflation has real effects …

We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … evidence, and quantify the relevance for monetary transmission to aggregate investment …

Existing models of structural change typically assume that all of investment is produced in manufacturing. This … assumption is strongly counterfactual: in the postwar US, the share of services value added in investment expenditure has been … investment and consumption. Our unified approach leads to three new insights: technological change is endogenously investment …