We extend the canonical income process with persistent and transitory risk to shock distributions with left … data from the United States. We find countercyclical variance and procyclical skewness of persistent shocks. All shock …

We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … are found to impair firm-level investment in all firms in our sample, but in particular for small firms and those with no … 20–40% of aggregate investment dynamics. …

autoregres-sion (SVAR) framework, that, in response to an adverse financial shock, tangible in-vestment falls more than … intangible investment. This positive co-movement betweentangible and intangible investment as well as the relative resilience of … intangibleinvestment pose a challenge for the theoretical model. We show that investment-specific adjustment costs help in reconciling the …

-rational movements, using a two-sector business cycle model, in which investment in housing is subject to collateral constraints. A large …

leads to a decline in domestic interest rates relative to world interest rates and to a reduction in investment growth …

We evaluate the role played by loan supply shocks in the decline of investment and industrial production during the … contributor to the German Great Depression. We find further that loan supply shocks were an important driver of investment in the …