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Investment Shocks and the Relative Price of Investment

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Author Info

  • Giorgio E. Primiceri

    (Northwestern University, CEPR and NBER)

  • Andrea Tambalotti

    (Federal Reserve Bank of New York)

  • Alejandro Justiniano

    (Federal Reserve Bank of Chicago)

Abstract

that it is likely to proxy for more fundamental disturbances to the smooth functioning of the fi nancial sector. To corroborate this interpretation, we show that it correlates strongly with interest rate spreads and that it played a particularly important role in the recession of 2008.

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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2009 Meeting Papers with number 686.

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Date of creation: 2009
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Handle: RePEc:red:sed009:686

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