investment goods into exogenous and endogenous sources. The endogenous fluctuations arise in the presence of countercyclical … markups which vary differently across the consumption and investment sectors. In turn, the movements in the markups are due to … investment goods, suggests that about a quarter of the movement in the price series can be attributed to this endogenous …

Using a Bayesian mixed effects model on a large firm-level panel we show that the investment slowdown is a long …-standing feature across 21 advanced economies since 1999. We find a flattening in the investment-q relationship over time, as firms … become less responsive to investment opportunities. Weaker responsiveness to investment opportunities is closely linked to …