We embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine … mean-preserving spread in the productivity of investment raises aggregate investment, productivity, and output. Increases … in uncertainty have important dynamic implications, causing sustained increases in investment and hours and a medium …

Typically measures of multifactor productivity growth have been based on a production and optimization framework that … capacity utilization adjustments for productivity growth measures. The resulting framework is then used to identify empirically … capital and labor on productivity growth in the U.S. manufacturing sector, 1947-1979 …

embodied technology, investment irreversibility, and variable capacity utilization. Low short-run capital … growth, and positive comovement in the forecastable components of output and hours. Capacity constraints result in nonlinear …

and non-residential investment fall sharply. Output changes little. With a lag of several years, inputs and investment …-price models, which predict the results we find: When technology improves, input use and investment demand generally fall in the …