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 …

equilibrium, general-equilibrium effects overturn this result: a monetary expansion increases the investment of high-productivity … their productivity and net worth and face collateral constraints that cause capital misallocation. TFP endogenously depends … firms relatively more than that of low-productivity ones, crowding out the latter and increasing TFP. We provide empirical …

interactions between MP and trade. According to the model with MP, supply-side productivity shocks contributed to the collapse of … to shocks that affected aggregate productivity and were specific to multinationals in a few key headquarters countries …

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 …