during good times and increase spending during bad times -- a cyclical matching rate on contributions to retirement savings … accounts. The combination of matching rates and matching limits on retirement savings plans creates sharp kinks in … bad aggregate states? I model an economy with liquid and illiquid savings accounts in which matching is suspended during …

broadly, the transformation of savings into future capital input. We find that this shock is the most important driver of U … investment-specific technology shock, affects the transformation of consumption into investment goods and is identified with the … relative price of investment. The second shock affects the production of installed capital from investment goods or, more …