investment; the impact of uncertainty on investment occurs primarily through changes in credit spreads; and innovations in credit … spreads have a strong effect on investment, irrespective of the level of uncertainty. These findings raise a question … financial shocks. By influencing the effective supply of credit, both types of shocks exert a powerful effect on investment and …

investment in the 2001 and 2007 -- 9 recessions. We examine economic interpretations of this stylized fact using a model where …

investment. The boom was sharply reversed in 2001, and a great deal of evidence suggests that the capital stock had become … excessive. Standard equilibrium business cycle models have difficulties in predicting the investment boom and overshooting. An … embodied technology model is constructed to replicate the pattern of investment boom and collapse. Unlike previous models of …

. Although the volatility of total inventory investment has fallen, the decline occurred well before the mid-1980s and was driven …

. Spectral estimators are no panacea for implementing long-run restrictions. In addition, when combining VAR coefficients with … in the non-parametric estimates about serial correlation in VAR residuals. This paper uses a spectral factorization to …