Ivashchenko, SergeyMutschler, Willi2016-11-232016-11-232016http://hdl.handle.net/2003/3539210.17877/DE290R-17433Kim (2003, JEDC) shows functional equivalence between intertemporal and multisectoral investment adjustments costs in a linearized RBC model. From an identification point of view, two parameters are not separately distinguishable, they enter as a sum into the linearized solution. We demonstrate that estimating the quadratic approximation of the model provides means to extract more information on the structural parameters from data and thus estimate both parameters that are unidentiable under the log-linearized model.enDiscussion Paper / SFB823;76, 2016identificationinvestment adjustment costsnonlinear DSGEpruningquadratic approximation310330620working paper