The Dynamic Effect of Micro-Structural Shocks on Private Investment Behavior

shocks, namely, investment-specific technology, markup and
technology shocks to key components of the Iranian economy:
private investment behaviour. The identification strategy positions
the structural shocks to private investment behaviour in the Dynamics
Stochastic General Equilibrium (DSGE) framework with a threeaccuracy test estimation: The Brooks and Gelman test, the
Metropolis-Hastings jumping distribution acceptance ratio, and the
distribution of the deep posteriors parameters are asymptotically
normal. The quarter economic data of Iran economy from July 1988
until March 2015 is applied. The findings illustrate that the structural
shocks about technology have a similar impact and cause a growth in
private investment, and the only difference is, in investment-specific
technology shock due to a temporary decrease in the capital expenses
installation (Tobin's Q), an investment boom is driven. In contrast,
the price markup shock due to inflation causes a decline in all
investment indices.