shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …

. We motivate our analysis with a simple model which predicts that: 1) investment and production in more concentrated … sectors are more affected by demand changes and 2) high uncertainty makes investment and production more sensitive to demand … using different structural vector autoregressive VAR approaches. The results are largely consistent with the proposed theory …

firm level investment and high-frequency identified monetary policy shocks. We show that the reaction of firms' investment …

accelerator specification of investment demand augmented by the liquidity ratio and a firm specific user cost of capital. The … significant for young firms due mainly to the fact that young firms rely more heavily on sales to increase investment. In general … it is found that firms can reduce the sensivity of investment to their liquidity position by building lending …

This paper examines the sensitivity of investment to cash flow using a panel of UK firms in manufacturing with a view … debt accumulation), we also investigate the extent to which investment becomes more sensitive to cash flow in periods of … pioneered by Romer and Romer. The results provide some support for the view that UK firms show greater investment sensitivity to …

How does the dispersion of firm-level shocks affect the investment channel of monetary policy? Using firm-level panel … policy has dampened real effects via the investment channel when firm-level TFP shock volatility is high. Our estimates for …