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- W1481677018 abstract "Current business cycle models systematically underestimate the correlation between consumption and investment. One reason for this failure is that a positive investment-specific technology shock generally induces a negative consumption response. The objective of this paper is to investigate whether positive consumption responses to investment-specific technology shocks can be obtained in a modern business cycle model. We find that the answer to this question is yes. With a combination of nominal rigidities and non-separable preferences, the consumption response is positive for general parameterisations of the model." @default.
- W1481677018 created "2016-06-24" @default.
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- W1481677018 date "2010-01-01" @default.
- W1481677018 modified "2023-09-25" @default.
- W1481677018 title "Investment-Specific Technology Shocks and Consumption" @default.
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- W1481677018 doi "https://doi.org/10.2139/ssrn.1735427" @default.
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