Idiosyncratic Shocks and the Role of Nonconvexities in Plant and Aggregate Investment Dynamics
特质冲击与非凸性在工厂及总量投资动态中的作用
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 the cross-sectional distribution of establishment investment rates. Examining the…