investment-specific productivity. We document that in U.S. postwar quarterly data total factor productivity (TFP) and the … relative price of investment are cointegrated. We show theoretically that TFP and the relative price of investment are … cointegrated if and only if neutral and investment-specific productivity share a common stochastic trend. We econometrically …

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 …

technology shock measures. We argue that the properties of technology shocks for the manufacturing sector are quite different …

's technology shock in driving aggregate fluctuations. A version of this model, estimated via maximum likelihood, points to these …

positive technology shock, and (c) measured productivity increases temporarily in response to a positive demand shock. More …

firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … strips. Our model delivers testable predictions about the behavior of firm-level real variables - investment and output …

investment-specific technology shocks in generating fluctuations in hours. Using a neoclassical stochastic growth model, we show …

short-run contractionary effect a positive investment shock on consumption. Such counterfactual co-movements are typical of … on impact of a positive investment shock …Recent empirical evidence identifies investment shocks as key driving forces behind business cycle fluctuations …

We provide empirical evidence that a positive shock to technology drives per capita hours worked, consumption …, investment, average productivity and output up. This evidence contrasts sharply with the results reported in a large and growing … literature that argues, on the basis of aggregate data, that per capita hours worked fall after a positive technology shock. We …