This paper identifies the mechanism through which financial crises exert long-term negative effects on output. Theory ….2% higher today if productivity-enhancing investment intensity had remained at its pre-crisis level …

This paper considers cost-reducing R&D investment with spillovers in a Cournot oligopoly with overlapping ownership. We …

This paper investigates the relationship linking investment (capital stock) and structural policies. Using a panel of … with less investment (lower capital stock). The paper also sheds light on the existence of non-linear effects of product …, barriers to entrepreneurship and barriers to trade and investment) tend to amplify the negative relationships between product …

-tax country induces bunching. Such bunching promotes investment incentives in the low-tax as well as the high-tax country. In … equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit … investment incentives and transfer pricing induces inefficiently low taxes …

firms' investment decisions. We characterize the conditions under which fire sales occur in equilibrium and their … consequences on firms' investment decisions. We also show that endogenous financial crises may arise in this environment, with …

to invest compared to autarky. The investment levels remain inefficient though. With generation facilities over-investment … occurs sometimes, while systematic under-investment occurs for transportation facilities. Free-riding reduces the incentives … investment …

multinational enterprise regarding the cross border distribution of its investment and the choice of its financing behavior. We …

In the absence of financing frictions, profit taxes reduce investment by their effect on the user cost of capital. With … finance constraints due to moral hazard, investment becomes sensitive to cash-flow and own equity of firms. We propose a … corporate finance model of investment and derive three central results: (i) Even small taxes impose first order welfare losses …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …