TY  - JOUR
AU  - Caballero,Ricardo J.
TI  - Aggregate Investment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6264
PY  - 1997
Y2  - November 1997
UR  - http://www.nber.org/papers/w6264
L1  - http://www.nber.org/papers/w6264.pdf
N1  - Author contact info:
Ricardo J. Caballero
MIT
Department of Economics
Room E52-373a
Cambridge, MA 02142-1347
Tel: 617/253-0489
Fax: 617/253-6915
E-Mail: caball@mit.edu
AB  - The 90s have witnessed a revival in economists' interest and hope of explaining" aggregate and microeconomic investment behavior.  New theories, better econometric" procedures, and more detailed panel data sets are behind this movement.  Much of the progress" has occurred at the level of microeconomic theories and evidence; however aggregation and general equilibrium aspects of the investment problem also has been significant. " The concept of sunk costs is at the center of modern theories.  The implications of these costs for" investment go well beyond the neoclassical response to the irreversible-technological friction" they represent, for they can also lead to first order inefficiencies when interacting with" informational and contractual problems.
ER  -