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 standard two-sector model, both total factor productivity as well as a series of non-technological shocks can impact …

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 …

algorithms. The results indicate that total factor productivity and the relative price of investment are, each, well …This paper applies the common stochastic trends representation approach to the time series of total factor productivity … and the relative price of investment to investigate the relationship between neutral technology and investment …