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Investment Shocks and the Relative Price of Investment

  • Giorgio E. Primiceri

    (Northwestern University, CEPR and NBER)

  • Andrea Tambalotti

    (Federal Reserve Bank of New York)

  • Alejandro Justiniano

    (Federal Reserve Bank of Chicago)

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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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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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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