@techreport{NBERw10446,
 title = "Investment, Capacity, and Uncertainty: A Putty-Clay Approach",
 author = "Simon Gilchrist and John C. Williams",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "10446",
 year = "2004",
 month = "April",
 URL = "http://www.nber.org/papers/w10446",
 abstract = {We embed the microeconomic decisions associated with investment under uncertainty, capacity utilization, and machine replacement in a general equilibrium model based on putty-clay technology. In the presence of irreversible factor proportions, a mean-preserving spread in the productivity of investment raises aggregate investment, productivity, and output. Increases in uncertainty have important dynamic implications, causing sustained increases in investment and hours and a medium-term expansion in the growth rate of labor productivity.},
}