growth model with aggregate shocks and incomplete markets. The model features a representative-agent economy with … complete markets allocation. Because capital income varies with the state of the economy, capital taxation provides a state …

-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 …

one type of capital good to save and invest in, fixed capital investment dynamics are tightly linked to consumption … dynamics, which are similar across lumpy and frictionless investment models. With capital goods heterogeneity, households … capital adjustment frictions. We quantify our arguments by introducing inventories into a two-sector lumpy investment model …

global imbalances on the U.S. economy in the 2000s. Our results suggest that the dynamics of foreign capital flows account …

implications for the pass-through of monetary policy to the real economy through mortgage contracts and household balance sheets. …

uncertainty, through its impact on precautionary savings and investment. The two approaches lead to costs of fluctuations that are …

developed economy sample that, as expected, cash flow has a positive impact on the change in the stock of cash only in the case … of the smallest firms, which are more likely to be borrowing constrained, and find in the developing economy sample that …