Contact Information

Department of Economics
Ludwig-Maximilians-Universität München
Ludwigstraße 28/RG
80539 Munich (Germany)

Phone: +49 (89) 2180-2128
Email: zorn@econ.lmu.de

Curriculum Vitae

Research and Teaching Fields

Primary: Macroeconomics
Secondary: Business Cycles, Investment

Working Papers

Abstract: I document the effects of macroeconomic and sector-specific shocks on investment in disaggregate sectoral capital expenditure data. The response of sectoral investment to macroeconomic shocks is hump-shaped, just as in aggregate data. By contrast, the effects of sector-specific innovations are monotonically decreasing. I build and calibrate a model of investment with convex capital adjustment costs and rational inattention to explain these features of the data. The model matches the empirical responses of sectoral investment to both shocks.

Winner of the 2016 Society for Computational Economics Graduate Student Paper Contest

"What Drives Aggregate Investment? Evidence from German Survey Data", with Rüdiger Bachmann

"The Nature of Capital Expenditures over the Business Cycle", with Rüdiger Bachmann

Abstract: We document business cycle statistics, cross-sectional properties, and within-firm adjustment patterns of capital expenditures on capacity increases, restructuring, rationalization, replacement and maintenance, and other investment projects. Over the business cycle, we find that (i) all investment types are at least weakly pro-cyclical; (ii) the volatility of capacity increases, restructuring, and other investment projects is relatively higher; (iii) the composition of total aggregate investment is time-varying. Moreover, we show that expenditures on capacity increases, restructuring, and other investment projects exhibit relatively stronger lumpy investment. Taken together, these results suggest that the lumpiness in total aggregate investment changes over the business cycle. Our stylized facts shed light on capital adjustment frictions, business cycle theories, and will inform quantitative models of disaggregate investment behavior.