Consumption and investment comove over the business cycle in response to shocks that permanently move the price of … investment. The interpretation of these shocks has relied on standard one-sector models or on models with two or more sectors … commingling of sectoral outputs in the assembly of final consumption and investment goods, in line with the U.S. Input …

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 …

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 …

evidence of a "demand granularity", based on investment growth shocks instead. The role of demand in explaining aggregate …

&D investment. As this is very controversial from an empirical perspective, a stochastic Poisson model of endogenous business cycles … and growth is presented where the determinants of the cyclical behaviour of R&D investment are analytically studied …

We develop a stylized two-sector business cycle model with endogenous firm dynamics in the investment goods sector. The … positive correlation between firms' profitability and the relative price of investment goods generates an endogenous … persistence mechanism in productivity dynamics which drives the model response to shocks. A white noise permanent shock to the …

This paper takes a full-information model-based approach to evaluate the link between investment-specific technology … and the inverse of the relative price of investment. The two-sector model presented includes monopolistic competition … the high-frequency volatility of the relative price of investment. Utilizing a Bayesian estimation approach to match the …