U.S. business investment has taken a serious toll during the global financial crisis and also in the recovery phase … investment did not pick up as expected. What is surprising is that the alleged investment slowdown happened at a time of record …, and strong labor markets-factors established in supporting business investment. Applying accelerator models and Bayesian …

In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms … aggregate investment obtained from adding up the actions of firms subject to aggregate and idiosyncratic shocks, is highly non … postwar sectoral U.S. manufacturing equipment and structures investment. For a given sequence of aggregate shocks, the …