Investment lags and macroeconomic dynamics

Research output: Contribution to journalArticlepeer-review


This study examines the dynamics and the fit of a time-to-build model. The benchmark model employs the investment adjustment cost specification of Christiano, Eichenbaum, and Evans (2005) and the alternative model utilizes the time-to-build specification of Casares (2006). The Bayesian estimation result conveys the following implications: In general, the time-to-build model generates similar dynamics as the benchmark model. But it does not improve the fit of the model to the data. The model comparison, based on marginal likelihood and simulation results, makes the benchmark model the winner of the horse race.

Original languageEnglish
Pages (from-to)113-155
Number of pages43
JournalB.E. Journal of Macroeconomics
Issue number1
StatePublished - 1 Jan 2015


  • Bayesian estimation
  • DSGE model
  • time-to-build


Dive into the research topics of 'Investment lags and macroeconomic dynamics'. Together they form a unique fingerprint.

Cite this