The empirical performance of the Q theory of investment can be significantly improved by simultaneously considering the … with the Q theory. The results show that there is a positive, stable medium-to-long-run relationship between investment and … time- and the frequency-varying features of the investment-Q relationship. Using continuous wavelet tools, I assess the …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief … shows that macroeconomic risk acts as an important deterrent to investments. -- business cycles ; real options ; investment …

of unfounded optimism cause boom-bust cycles in investment and to a lesser extent in output. In particular, the financial …

capital stock since the financial crisis can be explained by an accelerator response of investment to continued demand …. In many OECD countries, declining government investment as a share of GDP has further exacerbated post-crisis weakness in … capital stock growth, both directly and probably indirectly via adverse spillover effects on business investment. Finally …

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. …