This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Macroeconomics: Vol. 5 No. 4 (October 2013)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro Forthcoming Articles

Aggregate Implications of Lumpy Investment: New Evidence and a DSGE Model

Article Citation

Bachmann, Rüdiger, Ricardo J. Caballero, and Eduardo M. R. A. Engel. 2013. "Aggregate Implications of Lumpy Investment: New Evidence and a DSGE Model." American Economic Journal: Macroeconomics, 5(4): 29-67.

DOI: 10.1257/mac.5.4.29

Abstract

The sensitivity of US aggregate investment to shocks is procyclical. The response upon impact increases by approximately 50 percent from the trough to the peak of the business cycle. This feature of the data follows naturally from a DSGE model with lumpy microeconomic capital adjustment. Beyond explaining this specific time variation, our model and evidence provide a counterexample to the claim that microeconomic investment lumpiness is inconsequential for macroeconomic analysis.

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (145.73 KB) | Online Appendix (104.79 KB) | Author Disclosure Statement(s) (16.88 KB)

Authors

Bachmann, Rüdiger (RWTH Aachen U and CESifo, Munich)
Caballero, Ricardo J. (MIT)
Engel, Eduardo M. R. A. (U Chile)

JEL Classifications

E13: General Aggregative Models: Neoclassical
E22: Capital; Investment; Capacity
E32: Business Fluctuations; Cycles

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Macroeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us