Data and Code For: Lumpy Investment, Business Cycles, and Stimulus Policy

Principal Investigator(s):  View help for Principal Investigator(s) Thomas Winberry

Version:  View help for Version V1

Name File Type Size Last Modified
  Data Analysis 12/16/2020 10:06:AM
  Data Construction 12/16/2020 09:54:AM
  Het firm 12/16/2020 10:58:AM
  Rep firm 12/16/2020 10:58:AM
  Results 12/16/2020 10:01:AM
LICENSE.txt text/plain 1.4 KB 09/29/2020 07:23:AM
README.pdf application/pdf 26.9 KB 09/29/2020 07:23:AM
README.txt text/plain 9.4 KB 09/29/2020 07:23:AM

Project Citation: 

Winberry, Thomas. Data and Code For: Lumpy Investment, Business Cycles, and Stimulus Policy. Nashville, TN: American Economic Association [publisher], 2020. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-12-17. https://doi.org/10.3886/E119560V1

Project Description

Summary:  View help for Summary Abstract: 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 places important discipline in aggregating micro-level investment behavior.


Scope of Project

Subject Terms:  View help for Subject Terms investment; fixed costs; firm heterogeneity; business cycles; investment stimulus
JEL Classification:  View help for JEL Classification
      D25 Intertemporal Firm Choice: Investment, Capacity, and Financing
      E22 Investment; Capital; Intangible Capital; Capacity
      E62 Fiscal Policy
Geographic Coverage:  View help for Geographic Coverage United States
Time Period(s):  View help for Time Period(s) 1954 – 2016
Data Type(s):  View help for Data Type(s) aggregate data


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V1 [2020-12-17]

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