one type of capital good to save and invest in, fixed capital investment dynamics are tightly linked to consumption … dynamics, which are similar across lumpy and frictionless investment models. With capital goods heterogeneity, households … capital adjustment frictions. We quantify our arguments by introducing inventories into a two-sector lumpy investment model …

neoclassical growth model. Investment rates and total factor productivity start out low and rise over time. These model dynamics … distribution, which support the aggregate and micro-level implications of our theory …

find no evidence that fixed investment is the only or main source of ignition for economic growth …

consumption, investment and international growth models, we provide a consistent synthesis. Our framework permits the analysis of …

volume of investment. Its application to the United States economy and the economies of other major OECD nations suggests …