This paper analyses the theoretical and policy implications of assuming firm-specific lumpy investment behaviour by … firms and compares such implications to those occurring when adopting different investment specifications in a new …-Keynesian framework. We develop numerical simulations of the lumpy investment model by Sveen and Weinke (2007) and of other five …

The large majority of the work published on firm investment is done in the neoclassical frame of a rational optimizing … firm attempting to achieve optimal size. While this frame addresses one important consideration in firm investment, it has … cashflows are affecting the firm investment decisions. Second, the standard approach operates on an "average firm," which in …

From its publication in The Times in 1933, John Maynard Keynes’s investment multiplier sparked much debate and … controversy. Can an investment generate 3 or 4 times its value in income within one year? To date, no one has questioned the … is based on a faulty theory and must be abandoned. An upcoming article will challenge the permanent income hypothesis and …

endogenous capital, sticky prices, sticky wages, and adjustment costs of investment, can replicate a lag in the maximum response … investment projects …

This paper identifies the aggregate financial shocks and quantifies their effects on business investment based on an ….S. public firms' aggregate investment. The negligible aggregate relevance of financial shocks mainly results from the …, financially constrained firms are directly forced to cut investment, which dampens the aggregate investment demand and lowers the …

for further research, especially on the motivations behind investment decisions. Investments in market economies are …) and the General Theory (1936), as well as follow-ups in the post-Keynesian approaches and others dealing with "fundamental … society. By shaping business concerns and strategies, social institutions have a major impact on investment decisions in a …

the investment rate and the wage share of income in the long run. It is shown that a rising benchmark interest rate …