This paper investigates the short-run impact of Investment-Specific Technology (IST) Shocks on macroeconomics variables namely; Aggregate Investment, Aggregate Consumption and Gross Domestic Product using the VAR(p) model and quarterly data of the US economy from 1960 through 2018. After...

In this work we study the granular origins of business cycles and their possible underlying drivers. As shown by Gabaix (2011), the skewed nature of firm size distributions implies that idiosyncratic (and independent) firm-level shocks may account for a significant portion of aggregate...

This paper attempts to quantify business cycle effects of bank capital requirements. The authors use a general equilibrium model in which financing of capital goods production is subject to an agency problem. At the center of this problem is the interaction between entrepreneurs' moral hazard...