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 …

We study the role of financial frictions and firm heterogeneity in determining the investment channel of monetary … cost curve for financing investment. The aggregate effect of monetary policy may therefore depend on the distribution of …

Existing models of structural change typically assume that all of investment is produced in manufacturing. This … assumption is strongly counterfactual: in the postwar US, the share of services value added in investment expenditure has been … investment and consumption. Our unified approach leads to three new insights: technological change is endogenously investment …

We provide new evidence on how monetary policy affects investment and firm finance in the United States and the United … conditioning on size, asset growth, Tobin's Q, leverage or liquidity - and drive the response of aggregate investment. Older … and financial frictions in amplifying the effects of monetary policy on investment …

The Feldstein-Horioka study of 1980 found that OECD countries with high saving rates had high investment rates and vice … versa, contrary to the traditional theory of global capital market integration. This capital market segmentation view, which ….More recently, Alan Greenspan and John Helliwell have shown that the link between domestic saving and domestic investment became …

monetary policy analysis, but usually with capital and investment treated as exogenous a significant restriction. This paper … demonstrates that investment decisions can be endogenized without undue complexity in such models and that these can be calibrated …