-level investment is procyclical. We show that a heterogeneous-firm RBC model with quantitatively realistic countercyclically disperse … state investment rate distribution, produces investment dispersion that positively comoves with the cycle, with a …-sectional firm dynamics ; lumpy investment ; countercyclical risk ; aggregate shocks ; idiosyncratic shocks ; heterogeneous firms …

explaining the consumption path after a Marginal Efficiency of Investment shock. We use an otherwise standard medium-scale New …

Does increased policy uncertainty dampen investment plans of firms? We provide direct evidence on this question by … induced policy uncertainty have revised their investment plans differently from those that did not perceive an increase in … uncertainty. We find strong evidence that an increase in policy uncertainty does lead firms to reduce their investment plans. As …

uncertain point in the future if demand is isoelastic and variable extraction costs are zero but upfront exploration investment … breakthrough, but more oil is left in situ as exploration investment will be lower. The latter offsets the Green Paradox …