argued in two papers that the link between equipment investment and economic growth across countries is stronger than can be … generated by the Solow model. Accordingly, they conclude that such investment yields important external benefits. However, their … externalities to equipment investment. In particular, we find that the empirical link between investment and growth in the OECD …

We examine the neoclassical investment model using a panel of U.S. manufacturing firms. The standard model with no … for firms with low (pre-sample) payouts (firms we expect to face financing constraints). Hem, investment is sensitive to … both firm cash flow and macroeconomic credit conditions, holding constant investment opportunities. Sample splits based on …

A recent literature suggests that because investment expenditures are irreversible and can be delayed, they may be … aggregate investment. We find that the volatility of the marginal profitability of capital - a summary measure of uncertainty … - affects investment as the theory suggests, but the size of the effect is moderate, and is greatest for developing countries …

This paper studies the linkage between exchange rates and investment. emphasizing the role of producer exposure through … appreciations reduced investment in durable goods sectors in the 1970s and stimulated investment after 1983. By contrast nondurables … sectors tended to absorb exchange rate changes in price over cost markups. Exchange rate volatility depressed investment but …

Recent theoretical approaches have linked shifts in firms' internal funds and investment spending, holding constant … underlying investment opportunities. An important impediment to convincing tests of these models is the lack of firm-level data …) in the 1930s, to identify firms' relative cost of internal and external funds and analyze its effect on firms' investment …

I study irreversible investment decisions when projects take time to complete, and are subject to two types of …, and materials that will ultimately be required to complete the project, and that is only resolved as the investment … required, and which is external to the firm's investment activity. I derive a simple decision rule that maximizes the firm …

This paper extends previous research on the effect of investment on labor productivity at the country level by … accounting for investment in R&D, as well as for investment in fixed and human capital. Privately-funded R&D investment is found … social (national) rate of return to private R&D investment is about seven times as large as the return to investment in …

We study the effects of aggregate and idiosyncratic uncertainty on the entry of firms, total investment, and prices in … a competitive industry with irreversible investment. We first use standard dynamic programming methods to determine …

, especially efforts to raise the rate of investment. Recent studies of economic growth have raised a debate over the role played … by the investment rate in the long-run performance of the economy. Evidence from the states suggests that the effects of … physical capital investment …

significance. This paper derives highly tractable current account and investment specifications that we estimate without resorting … investment. It is a puzzle, however, for the intertemporal model that long-lasting local productivity shocks have a larger impact … effect on investment than on current account …