【Macro】Incomplete Information and Investment Inaction

  • 研討會日期 : 2024-05-23
  • 時間 : 14:30
  • 主講人 : Professor Jonathan J. Adams
  • 地點 : Conference room B110
  • 主持人 : Professor Donghoon Yoo
  • 演講者簡介 : Professor Jonathan J. Adams is an Assistant Professor in the Economics Department at the University of Florida. His research interests include Growth and Macroeconomics in general, while most of his current research is focused on Macroeconomics with Information Frictions.
  • 演講摘要 : How do investment frictions and information frictions interact? We study this question in a continuous time model of heterogeneous firms facing incomplete information and irreversible investment. We analytically characterize how the information friction distorts firms' decision rules and stationary distribution. The two frictions interact in rich and substantial ways. Noisier information shrinks a firm's inaction region, reduces the elasticity of investment to productivity, increases steady-state capital, increases capital misallocation, and makes firms less risky. Then, we test and confirm these predictions using Japanese administrative data that matches firms' forecasts to their balance sheets, incomes, and expenditures.