This paper presents a non-technical overview of the recent investment literature with a special emphasis on the … connection between technological progress and the investment decision. First of all, we acknowledge that some dramatic advances … have been made in the 1990s in understanding and modelling non-convex capital adjustment schemes and irreversibility …

In this paper, we extend the usual models of irreversible investment under uncertainty by introducing the stock of … public capital as an input for the private sector. Public investment takes place in a stochastic environment. Public capital … equilibrium analysis, as it is standard in models of irreversible investment under uncertainty. Even under uncertainty, the …

the low carbon-emitting sector, and (ii) reduce real investment and the capital stock in the highly carbon-emitting sector …, while real investment in the sector with low carbon emissions tends to fare better. To apply the theoretical predictions to … low carbon emissions, and (ii) substantial investment reallocation takes place, in particular from the manufacturing …

In this paper the standard Euler equation investment model with imperfectly competitive product markets is extended for … imperfectly competitive structures on the factor markets: labour markets and markets for investment goods. This extension leads to …

model is used to assess this development. In particular, estimation results for investment and employment adjustment after … this paper to cover also unified Germany. The results reveal that the adjustment of investment and employment can be … analysed with the same theoretical model for West and East Germany. However, the adjustment speed for investment differs …

Investment fell sharply in the euro area after the financial crisis and has not yet returned to pre-crisis levels in … investment dynamics. By doing so, we compare five prominent uncertainty proxies put forward in the recent literature: the … type of uncertainty proxy, we document pronounced negative investment responses to uncertainty shocks. We further show that …