Using plant-level data from Chile and the U.S. we show that investment spikes are highly pro-cyclical, so much so that … changes in the number of establishments undergoing investment spikes (the "extensive margin") account for the bulk of … variation in aggregate investment. The number of establishments undergoing investment spikes also has independent predictive …

"This paper shows how US monetary policy contributed to the drop in the volatility of US output fluctuations and to the … decoupling of household investment from the business cycle. I estimate a model of household investment, an aggregate of non … durable consumption and corporate sector investment, inflation and a short-term interest rate. Subsets of the models …