To analyze business fixed investment in Japan, which has been unusually volatile in recent years, we develop and apply … a loglinear flexible accelerator model. We find that movements in business fixed investment are consistent with …

of 2007 as its only impulse - produces time series for aggregate labor usage, consumption, investment, and real GDP that … closely resemble actual U.S. time series. Despite having no explicit financial market, the model has investment fall steeply …

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 …

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 …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …

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 …

In the presence of lumpy investment cost of adjustment, globalization may have non-conventional effects on the level of … investment and its cyclical behavior. Trade openness may lead to a discrete 'jump' in the level of investment, as it may trigger … a discrete change in the terms of trade. Such a shift creates a sizeable boost in aggregate investment. But trade …