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LINUX Cluster Project

SFM - Seminar für Makroökonomie (Prof. Illing)


  • Name: Seminar für Makroökonomie
  • Address: Ludwigstraße 28 VGB 019, 80539 München
  • Project Proposal Date: 2018-04-10 11:24:38


In many industrialized economies, aggregate investment is the most volatile component of national production. In addition to its high volatility, aggregate investment also accounts for a sizable share of national output. Taken together, these two observations suggest that in order to understand short-run fluctuations in economic activity, one has to study aggregate investment. This research project seeks to contribute to the understanding of aggregate investment dynamics and, more generally, business cycles. It documents novel empirical features of microeconomic investment behavior in Germany and the United States. In a second step, the project studies the implications of firm-level capital adjustment patterns for business cycle dynamics. To this end, it builds and numerically evaluates quantitative macroeconomic models of firm investment.