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 …

reallocated from the private to the public sectors, reducing investment and deepening the recessions even further. To account for …. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce …

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 …

stagnation of investment, especially private fixed investment, was the primary culprit. I then investigate the causes of the …

We present a model of investment hangover motivated by the Great Recession. In our model, overbuilding of residential … economy enters a liquidity trap with limited reallocation and low output. The drop in output reduces nonresidential investment … through a mechanism similar to the acceleration principle of investment. The burst in nonresidential investment is followed by …

the end of 2007 as its only impulse - produces time series for aggregate labor usage, consumption, investment, and real … financial market - has investment fall steeply during the recession not because of any distortions with the supply of capital …