Over the past decade, a number of researchers have extended conventional models of business fixed investment to … incorporate a role for financial constraints' in determining investment. This paper reviews developments and challenges in this … challenges. First, I describe analytical underpinnings of models of capital-market imperfections in the investment process, and …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …

-specific characteristics. The data indicate that tighter regulations on bank entry and bank activities boost the cost of financial …

cost pass-through to correct for mark-ups that potentially vary over space (to extract trade costs from price variation in … the cost of distance would be biased downwards by a factor of approximately four. Our preferred estimates imply that the …

production of a given stage in a GVC is not only a function of the marginal cost at which that stage can be produced in a given …