This paper explores the importance of investment-specific technology changes in anticipated TFP fluctuations. To this … shocks to the relative price of investment. We show in a model with IST diffusion and spillover that the correlation of these … productivity of the rest of the economy …

equipment-goods sectors are cointegrated if and only if the aggregate neutral productivity and the investment … common stochastic trend of sectoral productivities in explaining the movements of investment-specific technology as well as … those of interesting macroeconomic aggregates such as output, consumption, investment and hours worked. For this end, I …