fluctuations in savings on domestic investment and the current account? In the long run, we find that countries invest the marginal …Faced with income fluctuations, countries smooth their consumption by raising savings when income is high, and vice … versa. How much of these savings do countries invest at home and abroad? In other words, what are the effects of …

fluctuations in savings on domestic investment and the current account? In the long run, we find that countries invest the marginal …Faced with income fluctuations, countries smooth their consumption by raising savings when income is high, and vice … versa. How much of these savings do countries invest at home and abroad? In other words, what are the effects of …

We examine investment behavior when firms face costs in the access to external funds. We find that despite the … existence of liquidity constraints, standard investment regressions predict that cash flow is an important determinant of … investment only if one ignores q. Conversely, we also obtain significant cash flow effects even in the absence of financial …