The authors study a model of lumpy investment wherein establishments face persistent shocks to common and plant …-specific productivity, and nonconvex adjustment costs lead them to pursue generalized (S,s) investment rules. They allow persistent … the first model consistent with the cross-sectional distribution of establishment investment rates. Examining the …

This paper studies the role of investment-specific shocks as an amplification mechanism of labor market fluctuations …. We first show evidence suggesting that after a fall in the relative price of new equipment, not only do investment and … quantitative impact of investment-specific shocks on the labor market by incorporating them in a Real Business Cycle model with …

We investigate how idiosyncratic lender shocks impact corporate investment. Lenders with recent default experience … write stricter loan contracts, leading to a reduction in real investment for borrowing firms. The decline in investment is … evidence suggests that defaults inform lenders about investment opportunities and their screening ability, and adjustments to …

standard neoclassical growth model with US data and assume that an exogenous shock has driven aggregate output far below steady … the generality of this result w.r.t. size and persistence of the shock, size of the government spending multiplier, and …

triggers international investment. In the data, filtering out common shocks requires therefore allowing for country …

This paper investigates the complementarity between the different macroprudential policies to contain bank systemic … vary depending on the set of tools implemented, as well as bank’ size, TBTF, leverage, liquidity and concentration. Our …