• 1 Introduction
  • 2 Financing constraints and investment dynamics
  • 3 State dependent adjustment dynamics with unobserved targets
  • 3.1 The estimation problem
  • 3.2 A non-linear transformation
  • 4 Empirical strategy
  • 5 Descriptive statistics and estimation results
  • 6 Aggregate implications of adjustment heterogeneity
  • References