Is real investment fully determined by fundamentals or is it sometimes affected by stock market misvaluation? We … introduce three new tests that: measure the reaction of investment to sales shocks for firms that may be overvalued; use Fama … misvaluation into standard investment equations to estimate the quantitative effect of misvaluation on investment. Overall, the …

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 …

financial markets work, and stress the vital need of preventing financial devices that result in productive investment crowding …

Is the typical specification of the Euler equation for investment employed in DSGE models consistent with aggregate … the parameters in aggregate data because investment is unresponsive to changes in capital utilization and the real …

This report offers a detailed documentation and assessment of the differences in real productive investment between the … the US. The study considers various measures: investment gaps (defined as the difference in investment rates); the growth … investment dynamics to the discussion. The findings indicate the existence of a gap in productive investment in the period since …

Macroeconomic and sector-specific shocks exert differential effects on investment in disaggregate sectoral data. The … monotonically. A calibrated model of investment with convex capital adjustment costs and rational inattention explains these … features of the data. The model matches the empirical responses of sectoral investment because learning about shocks generates …

corporate investment. We document that in a sample of publicly listed firms in the United States over the period 1991-2013, bank … systemic risk is positively associated with the firm-level investment ratio after controlling for a large set of country … risk on corporate investment, suggesting that more financially constrained firms experience a larger effect of bank …

We estimate the impact on US non-residential fixed investment of permanent and temporary inflation uncertainty. We find … that while both have a negative effect, temporary uncertainty is more important for investment. This study has implications …

We estimate the effect of electorally induced policy uncertainty on investment in the manufacturing sector. Because …, and because the policies relevant to business investment vary systematically by party, uncertainty over the partisan … affiliation of the future governor is a source of political risk to firms considering business investment. More importantly, the …