This paper takes a full-information model-based approach to evaluate the link between investment-specific technology … and the inverse of the relative price of investment. The two-sector model presented includes monopolistic competition … the high-frequency volatility of the relative price of investment. Utilizing a Bayesian estimation approach to match the …

rarely present in investment models. In this paper, I extend the q-theory of investment to model explicitly the decision of … than focusing only on their rising share in overall investment. -- Intangible investment ; Q-Theory ; Skill Premium … known as intangibles, suggest that their share in overall investment has grown considerably. Still, intangible investment is …

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 …

investment-specific productivity. We document that in U.S. postwar quarterly data total factor productivity (TFP) and the … relative price of investment are cointegrated. We show theoretically that TFP and the relative price of investment are … cointegrated if and only if neutral and investment-specific productivity share a common stochastic trend. We econometrically …