Gormsen, Niels; Huber, Kilian - National Bureau of Economic Research - 2023
capital) determine investment and transmit financial shocks to the real economy. However, there exists little evidence on how … conference calls. We show that, on average, firms move their discount rates with the cost of capital, but the relation is far … time-varying wedges between discount rates and the cost of capital. The average wedge has increased substantially over the …