heterogenous firms facing borrowing constraints and investment irreversibility, it is shown that financial liberalization increases … the lumpiness of firm-level investment but decreases the variance of aggregate output. Hence, the model predicts that …

We study the time-varying effects of Tobin's q and cash flow on investment dynamics in the USA using a vector … variation over time of the response of investment to shocks in both variables. The time-varying sensitivity of investment to a … show that, although Tobin's q and cash flow are complementary sources of information for investment decisions, their …

used to define the value of trade and investment contracts on a decentralized basis without a central bank. Contracts …

used to define the value of trade and investment contracts on a decentralized basis without a central bank. Contracts …

, by unobserved shocks to participation by informationless traders, and by real investment. The equilibrium relations …

Firm-level investment paths are commonly characterised by periods of low or zero investment punctuated by large … investment ‘spikes’. We document that such spikes are important for understanding firm and aggregate level investment in the UK …. We show that annual variation in aggregate investment is driven by variation in the number of firms undertaking investment …

competition on firms' investment timing decisions. With a model featuring business-cycle variations in both the profit level and … "subtract" values of the investment option or the invested capital, leading to more cyclical investment than that predicted by … subtrated values, making the investment typically more cyclical in the monopolized industry than in the competitive industry …

This paper attempts to test whether financial supply-side shifts explain the low-investment climate of private firms in …

on nominal wage rigidities at the firm level. I trace out the long-run investment and growth trajectories of firms which … investment gap for two years following the shock, resulting in a persistent accumulated growth gap. I show that affected firms … with a higher degree of wage rigidity exhibit a steeper drop in investment and grow more slowly than affected firms with …