Investment spikes
Subtitle: new facts and a general equilibrium exploration
By: Francois Gourio, Anil K Kashyap
Contributors: Kashyap, Anil K.; National Bureau of Economic Research
Series: NBER working paper series -- working paper 13157; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13157.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] :
Description: "Using plant-level data from Chile and the U.S.  we show that investment spikes are highly pro-cyclical, so much so that changes in the number of establishments undergoing investment spikes (the "extensive margin") account for the bulk of variation in aggregate investment.  The number of establishments undergoing investment spikes also has independent predictive power for aggregate investment, even controlling for past investment and sales.  We re-calibrate the Thomas (2002) model (that includes fixed costs of investing) so that it assigns a prominent role to extensive adjustment.  The recalibrated model has different properties than the standard RBC model for some shocks"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 7/26/2007.

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