Recent empirical evidence identifies investment shocks as key driving forces behind business cycle fluctuations … between consumption growth and investment growth, a weak positive unconditional correlation between consumption growth and … short-run contractionary effect a positive investment shock on consumption. Such counterfactual co-movements are typical of …

Recent empirical evidence identifies investment shocks as key driving forces behind business cycle fluctuations … between consumption growth and investment growth, a weak positive unconditional correlation between consumption growth and … short-run contractionary effect a positive investment shock on consumption. Such counterfactual co-movements are typical of …

In modern economies, sharp increases in unemployment from major adverse shocks result in long periods of abnormal … unemployment and low output. This chapter investigates the processes that account for these persistent slumps. The data are from …