Consumption and investment comove over the business cycle in response to shocks that permanently move the price of … investment. The interpretation of these shocks has relied on standard one-sector models or on models with two or more sectors … commingling of sectoral outputs in the assembly of final consumption and investment goods, in line with the U.S. Input …

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 …

one (i.e. as a cross-sector shock), also exploring the shocks transmission mechanism across sectors. There are three main …

-supported dimensions. First, we assume that agents cannot directly observe the individual components of the productivity shock and instead …