TY  - BOOK
AU  - Justiniano,Alejandro
AU  - Primiceri,Giorgio E.
AU  - Tambalotti,Andrea
ED  - National Bureau of Economic Research.
TI  - Investment Shocks and Business Cycles
T2  - NBER working paper series
PY  - 2009///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - December 2009; Hardcopy version available to institutional subscribers
N2  - We study the driving forces of fluctuations in an estimated New Neoclassical Synthesis model of the U.S. economy with several shocks and frictions. In this model, shocks to the marginal efficiency of investment account for the bulk of fluctuations in output and hours at business cycle frequencies. Imperfect competition and, to a lesser extent, technological frictions are the key to their transmission. Labor supply shocks explain a large fraction of the variation in hours at very low frequencies, but are irrelevant over the business cycle. This is important because their microfoundations are widely regarded as unappealing
UR  - https://www.nber.org/papers/w15570
UR  - http://dx.doi.org/10.3386/w15570
ER  -