| 来源类型 | Working Paper
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| 规范类型 | 报告
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| DOI | 10.3386/w12845
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| 来源ID | Working Paper 12845
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| Idiosyncratic Shocks and the Role of Nonconvexities in Plant and Aggregate Investment Dynamics |
| Aubhik Khan; Julia Thomas
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| 发表日期 | 2007-01-19
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| 出版年 | 2007
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| 语种 | 英语
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| 摘要 | We study a model of lumpy investment wherein establishments face persistent shocks to common and plant-specific productivity, and nonconvex adjustment costs lead them to pursue generalized (S,s) investment rules. We allow persistent heterogeneity in both capital and total factor productivity alongside low-level investments exempt from adjustment costs to develop the first model consistent with available evidence on establishment-level investment rates. Examining the implications of lumpy investment for aggregate dynamics in this setting, we find that they remain substantial when factor supply considerations are ignored, but are quantitatively irrelevant in general equilibrium. The substantial implications of general equilibrium extend beyond the dynamics of aggregate series. While the presence of idiosyncratic shocks makes the time-averaged distribution of plant-level investment rates largely invariant to market-clearing movements in real wages and interest rates, we show that the dynamics of plants' investments differ sharply in their presence. Thus, model-based estimations of capital adjustment costs involving panel data may be quite sensitive to the assumption about equilibrium. Our analysis also offers new insights about how nonconvex adjustment costs influence investment at the plant. When establishments face idiosyncratic productivity shocks consistent with existing estimates, we find that nonconvex costs do not cause lumpy investments, but act to eliminate them. |
| 主题 | Macroeconomics
; Consumption and Investment
; Business Cycles
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| URL | https://www.nber.org/papers/w12845
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| 来源智库 | National Bureau of Economic Research (United States)
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| 引用统计 |
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/570511
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推荐引用方式
GB/T 7714 |
Aubhik Khan,Julia Thomas. Idiosyncratic Shocks and the Role of Nonconvexities in Plant and Aggregate Investment Dynamics. 2007.
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文件名：
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w12845.pdf
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格式：
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Adobe PDF
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