Aggregate investment in a growth model with adjustment costs

Abstract

In this paper, the author simulates the general equilibrium structure trying to mimic the observed variability of aggregate investment and the statistic properties of investment with its price and other real variables

this model generates equilibrium prices at each period of time. The paper also studies the co-movements of the price of investment, of rental price of capital and of aggregate investment when exogenous perturbations affect the optimal paths of the variables that solve the assumed structural model. Finally uses the data generated by the model to test the performance of alternative partial equilibrium analyses of aggregate investment. References