subsidies. -- Labor taxation ; human capital investment ; education subsidies ; idiosyncratic risk ; risk properties of human … incentives to work and to invest in human capital. Education subsidies are not used for social insurance, but are only targeted … capital …

-sections of firm-level real value added and Solow residual innovations, as well as capital and employment adjustment. We find two …-level investment is procyclical. We show that a heterogeneous-firm RBC model with quantitatively realistic countercyclically disperse … state investment rate distribution, produces investment dispersion that positively comoves with the cycle, with a …

question in the context of a heterogeneous-firm RBC model with persistent firm-level productivity shocks and lumpy capital …-varying uncertainty, highlighted in the literature. -- Ss model ; RBC model ; lumpy investment ; countercyclical risk ; aggregate shocks …