This paper looks at the effect of demand shocks on the investment share of the economy. Using panel data on 20 OECD … countries, we show that the rate of growth of autonomous demand (exports, public spending and housing investment) is positively … correlated with subsequent values of the share of business investment in GDP. By means of an instrumental-variables strategy, we …

sufficiently expansionary environment can generate sufficient investment to shift that relationship until the NAIRU is compatible …

The lumpy nature of plant-level investment is generally not taken into account in the context of monetary theory (see …, e.g., Christiano et al. 2005 and Woodford 2005). We formulate a generalized (S,s) pricing and investment model which is … empirically more plausible along that dimension. Surprisingly, our main result shows that the presence of lumpy investment casts …

In this paper the standard Euler equation investment model with imperfectly competitive product markets is extended for … imperfectly competitive structures on the factor markets: labour markets and markets for investment goods. This extension leads to …

This paper uses a neoclassical investment model extended with installation costs for capital, agency costs for … investment financing, and the possibility of the firm being output constrained as a framework for an empirical analysis of … investment behaviour in the Swedish manufacturing industry. The theory is implemented within a multivariate error …

In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …

Leading production-based asset pricing models predict that the sources of fluctuations in real investment and (scaled …-implied marginal Q. We find that the bulk of fluctuations in Q (or alternatively, aggregate investment) is driven by expected … investment return (discount rate) shocks. Yet, expected marginal profit shocks play a non-negligible role. Our findings are …

Macroeconomic and sector-specific shocks exert differential effects on investment in disaggregate sectoral data. The … monotonically. A calibrated model of investment with convex capital adjustment costs and rational inattention explains these … features of the data. The model matches the empirical responses of sectoral investment because learning about shocks generates …

investment with vintage capital, namely, systems where all key variables (capitals, investments, prices) are indexed not only by … this general context. In particular, for optimal investment with vintage capital, existence and uniqueness of a long run … equilibrium distribution is proved for general concave revenues and convex investment costs, and analytic formulas are obtained …