This paper studies the productivity implications of the cyclical reallocation of capital. Frictions in the reallocation … reallocation and thus in productivity. These frictions also impact the capital accumulation decision. The effects are … plant-level productivity. Instead of relying on approximative solution techniques we show analytically that a higher …

model in which technical advances are embodied in new capital, investment will translate directly into productivity gains … 1992, due to productivity growth in MNCs with Canadian affiliates; (3) the investment elasticity of productivity growth is … robust investment which translates directly into productivity gains …

The arrival of new, unfamiliar, investment opportunities is often associated with "exuberant" movements in asset prices … signals about the profitability of the new investment opportunities, and vice versa. In this paper, we study how such … information spillovers impact the incentives that agents face when making their real economic decisions. On the positive front, we …

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

rigidities: investment adjustment costs, variable capacity utilization, habit formation in consumption, and habit formation in … leisure. Business cycles are assumed to be driven by permanent and stationary neutral productivity shocks, permanent … investment-specific shocks, and government spending shocks. Each of these shocks is buffeted by four types of structural …

-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job at … business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks …

We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby … a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less … volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and …