This paper examines the impact of interest rates and inflation on bank loans and investment within a framework that … treating the lending and deposit rates of interest as distinct parameters in investment equations. The spread between the two …

, investment, and employment. We show that a Kiyotaki-Moore model accounts for both properties when business-cycle movements are … driven, in a significant way, by animal spirit shocks to credit-financed investment demand. The credit-based nature of such …, Bayesian estimation of our benchmark DSGE model on US data 1975-2010 shows that movements in investment driven by animal …

regimes depending on the values of the parameters in the investment, saving and distribution function. Estimating these core …

of overlapping generations, in the context of a class of endogenous growth theories with investment adjustment costs. In … the model used in this paper, savings and investment are co-determined through adjustments in the real interest rate, and … the equilibrium investment rate determines the long-run growth rate. The two classes of models have similar predictions …