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 …We estimate a New-Neoclassical Synthesis model of the business cycle with two investment shocks. The first, an …

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 …We estimate a New-Neoclassical Synthesis model of the business cycle with two investment shocks. The first, an …

returns is developed. It is shown that these economies of scale need only be present in one sector of the economy (investment … as well as a procyclical investment share. The model can account for the observed variability of hours worked …

frictions, they are by no means enough to account for the observed economic fluctuations. Investment wedges play a major role …

money demand falls, while a positive goods productivity shock raises temporary output and velocity. The paper explains such … important for velocity during less stable times and the goods productivity shock more important during stable times. -- business …

We make three comparisons relevant for the business cycle accounting approach. We show that in theory, representing the … investment wedge as a tax on investment is equivalent to representing this wedge as a tax on capital income as long as the … underlying probability distributions over the investment wedge are different in the two representations. Even so, the …