scholarly journals Lumpy Investment, Lumpy Inventories

2016 ◽  
Vol 48 (5) ◽  
pp. 821-855 ◽  
Author(s):  
RÜDIGER BACHMANN ◽  
LIN MA
Keyword(s):  
Lumpy Investment

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

2006 ◽  
Author(s):  
Ruediger Bachmann ◽  
Ricardo Caballero ◽  
Eduardo M.R.A. Engel
Keyword(s):  
Dsge Model ◽  
Lumpy Investment ◽  
New Evidence

scholarly journals Machine Replacement and the Business Cycle: Lumps and Bumps

1999 ◽  
Vol 89 (4) ◽  
pp. 921-946 ◽  
Author(s):  
Russell Cooper ◽  
John Haltiwanger ◽  
Laura Power
Keyword(s):  
Capital Stock ◽  
Cross Sectional ◽  
Lumpy Investment ◽  
Level Data ◽  
Investment Dynamics ◽  
Aggregate Investment ◽  
The Cross ◽  
The Business Cycle ◽  
Plant Level ◽  
Machine Replacement

This paper explores investment fluctuations due to discrete changes in a plant's capital stock. The resulting aggregate investment dynamics are surprisingly rich, reflecting the interaction between a replacement cycle, the cross-sectional distribution of the age of the capital stock, and an aggregate shock. Using plant-level data, lumpy investment is procyclical and more likely for older capital. Further, the predicted path of aggregate investment that neglects vintage effects tracks actual aggregate investment reasonably well. However, ignoring fluctuations in the cross-sectional distribution of investment vintages can yield predictable nontrivial errors in forecasting changes in aggregate investment. (JEL E22, E32)

Lumpy Investment, Business Cycles, and Stimulus Policy

2021 ◽  
Vol 111 (1) ◽  
pp. 364-396 ◽  
Author(s):  
Thomas Winberry
Keyword(s):  
Interest Rate ◽  
Business Cycles ◽  
Interest Rates ◽  
Real Interest Rate ◽  
Extensive Margin ◽  
Investment Behavior ◽  
The Real ◽  
Lumpy Investment ◽  
Aggregate Investment ◽  
Micro Level

I study the aggregate implications of micro-level lumpy investment in a model consistent with the empirical dynamics of the real interest rate. The elasticity of aggregate investment with respect to shocks is procyclical because more firms are likely to make an extensive margin investment in expansions than in recessions. Matching the dynamics of the real interest rate is key to generating this result because it disciplines the interest-elasticity of investment and avoids counterfactual behavior of the model that would otherwise eliminate most of the procyclical responsiveness. Therefore, data on interest rates place important discipline in aggregating micro-level investment behavior. (JEL D25, E13, E22, E23, E43, G31, H25)

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

2008 ◽  
Author(s):  
Ruediger Bachmann ◽  
Ricardo J. Caballero ◽  
Eduardo M. R. A. Engel
Keyword(s):  
Dsge Model ◽  
Lumpy Investment ◽  
New Evidence
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