frictions, they are by no means enough to account for the observed economic fluctuations. Investment wedges play a major role …

We identify an inflationary technology news shock as the leading source of business cycle variations for the postwar U ….S. economy. This shock acts like a demand shock: it induces strong positive comovement in real quantities - GDP, consumption …, investment - and weak positive comovement between real quantities and inflation, contrary to the view that anticipated …

This paper explores the importance of investment-specific technology changes in anticipated TFP fluctuations. To this … shocks to the relative price of investment. We show in a model with IST diffusion and spillover that the correlation of these …

one (i.e. as a cross-sector shock), also exploring the shocks transmission mechanism across sectors. There are three main …

cycle volatility seems more due to investment specific technology shocks than neutral technology shocks and this result is …