investment-specific technology shock, affects the transformation of consumption into investment goods and is identified with the … relative price of investment. The second shock affects the production of installed capital from investment goods or, more …We estimate a New-Neoclassical Synthesis model of the business cycle with two investment shocks. The first, an …

output, investment, and net exports. We reexamine the importance of world real interest rate shocks using an approach that …'s observable endogenous variables. Then we use variance decompositions to examine the importance of each shock. We apply this …

Shocks to the marginal efficiency of investment are the most important drivers of business cycle fluctuations in U ….S. output and hours. Moreover, like a textbook demand shock, these disturbances drive prices higher in expansions. We reach … frictions are the key to the transmission of investment shocks in the model …

An n-variable structural vector auto-regression (SVAR) can be identified (up to shock order) from the evolution of the … on the variance process. I propose a new identification argument that identifies the SVAR up to shock orderings using the … autocovariance structure of second moments of the residuals, implied by an arbitrary stochastic process for the shock variances …

We show that supply-side financial shocks have a large impact on the investment decisions of firms. We do this by … supply and investment. We show that these idiosyncratic bank shocks explain 40 percent of aggregate loan and investment …

explore this natural experiment by using a simple asset-pricing model to study the aftermath of this false news shock. We find … shock had a persistent negative effect on the stock prices of other major airline companies. This is consistent with the …

equilibrium, two distinct economic states arise endogenously: “normal times,” periods of modest investment, and “booms,” periods … of expansionary investment. Normal times occur when the intermediary sector realizes moderate investment opportunities …. Booms occur when the intermediary sector realizes many investment opportunities, but also occur when it realizes very few …

This paper empirically investigates banks' investment allocations over the recent business cycle. I identify …