Letterie, Wilko; Pfann, Gerard A.; Verick, Sher - In: Oxford Bulletin of Economics and Statistics 72 (2010) 3, pp. 263-281
We estimate a model of homogeneous capital investment with two installation possibilities - replacement and expansion using observations at the establishment level. We find that regime switches identified by "ad hoc" measures of lumpy investment do not adequately distinguish expansionary from...