This study highlights the importance of investment-specific technological (IST) progress in affecting the business … investment goods across different vintages, which raises payouts from new investments while inducing capital losses of older … investment goods. I develop a DSGE model that focuses on asset valuation by capital owners, considering their net wealth. The …

This paper argues that investment-specific technological progress (ISTP) conventionally identified with the relative … price of investment, inevitably correlate with neutral technological progress in heterogeneous production networks …