Investment Dispersion and the Business Cycle
نویسندگان
چکیده
منابع مشابه
Investment options and the business cycle
This paper extends Lucas (1978) to a production economy with two capital goods. It is an RBC model in which each unit of investment requires a new idea, an “option”. When options are scarce, new capital is harder to put in place and the value of old capital rises. Thus the stock market and Tobin’s Q are negative indexes of intangibles. During a boom, Q rises gradually, as options are used up. B...
متن کاملCorporate Investment Over the Business Cycle
While firm-level capital growth rates exhibit positive spikes, and rise as fast as they fall, the average capital growth rate across firms exhibits negative spikes, and declines faster than it recovers. We develop a dynamic model of investment that reconciles these empirical patterns. The model features costly reversibility, cyclical macroeconomic shocks, and uncertainty about the state of the ...
متن کاملManagement Ownership and Investment in the Business Cycle
Does risk aversion amplify business cycle downturns? I study the risk exposure of CEOs and its effect on firm investment in times of high macroeconomic uncertainty. Exploiting exogenous variation in CEO equity ownership, I show that firms with larger CEO stakes decrease investment significantly more in periods of high uncertainty. I consider whether better shareholder alignment explains this fi...
متن کاملCredit Constraints, FirmsPrecautionary Investment, and the Business Cycle
This paper studies the macroeconomic implications of rmsprecautionary real investment behavior in response to the anticipation of future nancing constraints. Firms increase their demand for liquid and safe but low-return investments in anticipation of future borrowing constraints in order to decrease the probability of having to forego future pro table investment opportunities. I show in a c...
متن کاملIs Lumpy Investment really Irrelevant for the Business Cycle?
It is a well documented empirical fact that rm level investment is lumpy rather than smooth. In the present paper we nd that the aggregate consequences of lumpy investment in general equilibrium are quantitatively important. Earlier results stressing the irrelevance of lumpy investment in general equilibrium are therefore an artefact of assuming perfect competition combined with fully exible...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: American Economic Review
سال: 2014
ISSN: 0002-8282
DOI: 10.1257/aer.104.4.1392