Firm-level investment is lumpy and volatile but aggregate investment is much smoother and highly serially correlated …. These different patterns of investment behavior have been viewed as indicating convex adjustment costs at the aggregate … yet at the same time generate lumpiness in plant-level investment. In particular, our model can (i) derive aggregate …

The often discussed problems of aggregating tangible capital assets across vintages and of decomposing value aggregates … the interest rate and the capital's age? In discussing these issues, five related quantity variables and five related …