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 …

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 …. Nonetheless, this new literature has not satisfactorily accounted for the investment-specific (or embodied) nature of technical …

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 …

stands in stark contrast to traditional VAR models, which yield decisively different results in the two identification …

autoregres-sion (SVAR) framework, that, in response to an adverse financial shock, tangible in-vestment falls more than … intangible investment. This positive co-movement betweentangible and intangible investment as well as the relative resilience of … intangibleinvestment pose a challenge for the theoretical model. We show that investment-specific adjustment costs help in reconciling the …

motives for investment. Specifically, firms invest to expand capacity and to replace old machines. The model considers … irreversible investment under uncertainty and embodied technological progress. It is shown to be consistent with the following … empirical observations: Investment is lumpy and infrequent at the firm level; firms can invest even if they have not reached …