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shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles. …
Persistent link: https://www.econbiz.de/10012154622
This paper uses a panel of UK manufacturing firms to examine whether the effect of cash flow on inventory investment … effect of cash flow on inventory investment is concentrated among firms identified as financially constrained using either … on the inventory investment of unconstrained firms. This raises doubts about whether these are accurate indicators of …
Persistent link: https://www.econbiz.de/10014154882
firms' investment is funded using financial markets. I then construct a dynamic equilibrium model that matches these … of financial assets, directing funds towards investment opportunities, and charge an intermediation spread to cover their … investment volatility …
Persistent link: https://www.econbiz.de/10013038047
We argue that secular change in both the production and composition of investment goods has weakened private investment … the production of investment goods amplify the response of consumption to monetary policy shocks by varying labor income … investment goods production has declined, (ii) the import share of investment goods has risen, and (iii) the composition of …
Persistent link: https://www.econbiz.de/10013235658
the macroeconomics of saving-investment imbalances …
Persistent link: https://www.econbiz.de/10013056401
need for money may affect capital formation, resulting in either too much or too little investment. Existing models of … money and capital however tend to overlook that both types of investment inefficiencies can be equilibrium outcomes … implies that both over- and under-investment can arise. We use our framework to study whether monetary policy can effectively …
Persistent link: https://www.econbiz.de/10012894978
This paper analyses the theoretical and policy implications of assuming firm-specific lumpy investment behaviour by … firms and compares such implications to those occurring when adopting different investment specifications in a new …-Keynesian framework. We develop numerical simulations of the lumpy investment model by Sveen and Weinke (2007) and of other five …
Persistent link: https://www.econbiz.de/10013059715
shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …
Persistent link: https://www.econbiz.de/10012842965
firm level investment and high-frequency identified monetary policy shocks. We show that the reaction of firms' investment …
Persistent link: https://www.econbiz.de/10012837618
Is monetary policy less effective at stimulating investment during periods of elevated volatility (when all firms … elevated volatility leads to a decrease in extensive margin investment incentive so that nominal stimulus generates less … aggregate investment. To do this, I first document empirically that high volatility weakens firms' investment responses to …
Persistent link: https://www.econbiz.de/10012840814