Employing an endogenous growth model with human capital, this paper explores how productivity shocks in the goods and … human capital producing sectors contribute to explaining aggregate fluctuations in output, consumption, investment and hours … of innovations to productivity on macroeconomic activity …

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 …

Macroeconomic and sector-specific shocks exert differential effects on investment in disaggregate sectoral data. The … monotonically. A calibrated model of investment with convex capital adjustment costs and rational inattention explains these … features of the data. The model matches the empirical responses of sectoral investment because learning about shocks generates …

IT investment in any sectors, it does significantly improve labor productivity for firms in manufacturing and in …, cloud usage is expected to increase the productivity of firms, as it allows them to quickly customize the IT they require to …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

question in the context of a heterogeneous-firm RBC model with persistent firm-level productivity shocks and lumpy capital …