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

worked, unemployment and capacity utilization. For each of these series, we document the presence of an important peak in the …

technology used to produce human capital is identical to the technologies used to produce consumption and investment goods, and …

state. When all agents expect growth to be slow, the returns on investment are low, and little investment takes place. This … slows growth and confirms the prediction that the returns on investment will be low. But if agents expect fast growth …, investment is high, returns are high, and growth is rapid. This expectational indeterminacy is induced by complementarity between …

shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …

major intermediate input into expanding plant capacity, investment goods, is coutercyclical. The ratio of these prices is … expanding plant capacity by installing investment goods (`adjustment costs'). Also, its numerator and denominator have such … technology for producing investment goods. The adjustment costs cause the two prices to respond differently to these two shocks …

employment growth rates across sectors (G) and the unemployment rate implies that shifts in demand from some sectors to others … are responsible for a substantial fraction of cyclical variation in unemployment. This paper demonstrates that, under … the unemployment rate. Two tests are developed which permit one to distinquish between a pure sectoral shift …

unemployment benefits …