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Is Lumpy Investment really Irrelevant for the Business Cycle?

Author(s) : Sveen, Tommy , Weinke, Lutz
Description : New-Keynesian (NK) models can only account for the dynamic effects of monetary policy shocks if it is assumed that aggregate capital accumulation is much smoother than it would be the case under frictionless firm-level investment, as discussed in Woodford (2003, Ch. 5). We find that lumpy investment...
Repository : e-Repositori UPF , View repository documents
Language(s) : English
Subject(s) : Lumpy Investment, Sticky Prices
Publisher(s) :
Contributor(s) : Universitat Pompeu Fabra. Departament d'Economia i Empresa
Source(s) :
Publication Date(s) : 2012-07-11