holds for the microeconomic response of some of the most important economic variables, such as investment, labor demand, and … actual response to shocks is less than half as fast as the estimated response. For investment, labor demand and prices, the …, even after aggregating investment across all establishments in U.S. manufacturing, the estimate of its speed of adjustment …

decoupling of household investment from the business cycle. I estimate a model of household investment, an aggregate of non … durable consumption and corporate sector investment, inflation and a short-term interest rate. Subsets of the models … large monetary policy shocks contributions to GDP components and by a high correlation of household investment to the …