impact of changes in the interest rate on macroeconomic investment under certainty and under uncertainty to investigate … whether uncertainty over future interest rates in the Euro area hampers monetary policy transmission. In this non-linear model … 'play' area. Second, we apply an algorithm describing path-dependent play-hysteresis to estimate investment hysteresis using …

example. These adjustment costs lead to a dynamic supply pattern similar to hysteresis. In analogy to "hysteresis losses" in … level of a single firm and use explicit aggregation tools from hysteresis theory in mathematics and physics to calculate … dynamic losses. We show that strong market fluctuations generate disproportionately large hysteresis losses for producers …