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 …

(before making additional payments). By contrast, debt declined most (so saving rose most) for unconstrained consumers. These …

, whereas debt declined most (so saving rose most) for unconstrained consumers. More generally, the results suggest that there …