. Accordingly, R&D firms will optimally adjust their investment decisions to fit tax schedule changes. This study analyzes how … implementation. For this purpose, we consider adjustment costs involved in the investment process and allow firms to make a forward … looking investment decision in a R&D-based endogenous growth model. Calibrating the model with U.S. data, we find that a …

and services) model with induced innovation that can rationalize these phenomena as well as several other empirical …

question using unique, granular data on innovation investment in R&D and diffusion from a representative survey of German firms …. Our data allows to identify the crisis-induced innovation investment cuts with mean conditional reductions of -65% (R … estimate that a 1% cyclical output drop translates into a -0.3% fall in innovation investment. Firm-level financial constraints …

. Our results provide further support for several of Mankiw, Romer and Weil's key conclusions--investment in physical … capital, population growth, and the initial levels of output seem to matter a great deal. However, investment in human capital … has no ability to account for changes in growth rates over time. We conclude that investment in physical capital seems to …

on the innovation incentives of incumbents. To assess the net effect of these forces, we build a new endogenous growth …

We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby … volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and … a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less …