data from the U.S. and Germany in structural VARs, we find that positive innovations to business uncertainty lead to …

expectations regarding endogenous outcomes can emerge as a purely self-fulfilling equilibrium property when investment choices are … significant heterogeneity in real and financial investment choices, even in the absence of any heterogeneity in individual … fluctuations in aggregate investment and asset prices, including fluctuations that are smoother than those often associated with …

To analyze business fixed investment in Japan, which has been unusually volatile in recent years, we develop and apply … a loglinear flexible accelerator model. We find that movements in business fixed investment are consistent with …

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 …

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 …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …