When investment is irreversible, theory suggests that firms will be "reluctant to invest." This reluctance creates a … wedge between the discount rate guiding investment decisions and the standard Jorgensonian user cost (adjusted for risk). We …

Though the U.S. federal investment tax credit (ITC) was permanently repealed in 1986, statelevel ITCs have proliferated … over the last few decades. Are these tax incentives effective in increasing investment within the state? How much of this … increase is due to investment drawn away from other states? Based on a panel dataset for all 50 states, we find a significant …

The interpretation of the significant relation between business investment spending and cash flow has been … controversial. A large body of research has found that investment/cash flow sensitivities are higher for financially constrained … with the Kaplan and Zingales critique, investment/cash flow sensitivities are lower for financially constrained firms. This …

This paper proposes a new framework for studying the effects of monetary policy on business investment. Important … ambiguities with the modeling of investment dynamics and interactions between real and financial decisions suggest modeling … investment spending as a VAR. Based on a panel of financial statement data for 6,408 German firms (44,345 datapoints …

-off, and explains comparative development by variations in (subsequent) investment rates. The present analysis integrates these …