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The Case of Endogenous Capital Formation

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Table 1: Baseline parameter values for the numerical analysis
Figure 2: Impulse response functions to an anticipated technology shock (a) Baseline parameters
Figure 3: Impulse response functions to a government-spending shock (a) Unanticipated shock
Figure 4: Weights on forecasted augmented in‡ation 0 1 2 3 4 5 6 7 8 900.0010.0020.0030.0041 jΨj ε ψ =1εψ=3εψ =10εψ=∞
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