by just enhancing the standard frame- work with investment adjustment costs can resolve the 'productivity-hours puzzle'. …

co-moves with GDP and the response of investment to a positive investment shock is attenuated. In the model with …Various papers have identified shocks to investment as major drivers of output, investment, hours, and interest rates …. These investment shocks have been linked to financial frictions because financial markets are instrumental in transforming …

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 …We estimate a New-Neoclassical Synthesis model of the business cycle with two investment shocks. The first, an …

This paper explores the importance of investment-specific technology changes in anticipated TFP fluctuations. To this … shocks to the relative price of investment. We show in a model with IST diffusion and spillover that the correlation of these …

This paper investigates the short-run impact of Investment-Specific Technology (IST) Shocks on macroeconomics variables … namely; Aggregate Investment, Aggregate Consumption and Gross Domestic Product using the VAR(p) model and quarterly data of …, yet, a shock to IST influence a change in aggregate consumption. Inferences from impulse response function (IRF) showed …