We argue that secular change in both the production and composition of investment goods has weakened investment's role in the transmission of monetary policy to labor earnings and consumption. We show analytically that fluctuations in the production of investment goods amplify the response of...

Innovation drives China's high-quality economic development, with corporate R&D investment being key to innovation. Using data from Chinese A-share non-financial listed firms (2010-2022), this study defines peer firms using a four-dimensional dynamic matching method of "year-industry-ownership...

This paper focuses on an empirical analysis of the relationship between investing and saving, taking into account various economic regions. The economic aggregates are selected following the International Monetary Fund (IMF) standard classification. The investigation is developed within the...

This study provides new evidence on how production digitalization investment affects firm financial performance across diverse European regions. A panel of 14,935 firm-year observations from 30 countries (2012-2022), including a focused Baltic subsample, is used alongside a refined digital...

This study aims to examine the impacts of AI investment on economic growth, while controlling for labor force participation and gross fixed capital formation in Germany. The analysis is based on data collected on the state of economic development in Germany from the first quarter of 2012 to the...

We revisit the credit channel of monetary policy when firms face multiple financing constraints, a common feature of corporate financing we document empirically. Our theory shows that the multiplicity of constraints dampens the transmission of expansionary policy to firm borrowing and investment...

This Technical Note builds directly on the Urban Heat Risk Assessment Technical Note, which focuses on diagnosing heat hazards, exposure, and impacts in urban areas. In many cities, the analytical understanding of extreme heat has advanced rapidly, supported by improved climate data, spatial...

This study examines how firms' financial heterogeneity shapes the transmission of monetary policy to investment in Latin American economies. It develops an extended theoretical model with heterogeneous firms, calibrated for Latin American economies, and validates it empirically through local...

We study how firms' investment responds to interest rate changes based on a German firm survey, combining hypothetical vignettes, open-ended questions, and rich firm data. We estimate a 7 percent semi-elasticity of investment to loan rates-about half the total corporate investment response to...

This note examines whether public infrastructure investment crowds in private investment in the Western Balkans and how this relationship compares with the EU. Using Eurostat data for 2000-2024 and a sector-level analysis, it finds that higher public infrastructure investment is generally...

In this brief essay we shall consider some policy implications which arise from treating scientific expenditure as an investment producing national economic wealth. We shall seek to clarify this investment view, to link it with the question of selectivity in basic science and with the support of...

We present a new dynamic model of corporate investment in imperfectly-competitive product markets, extending the neoclassical (Q) theory of capital to a multi-firm, multi-product, fullystructural model. Our model embeds a state-of-the-art hedonic demand system, endogenizes firms' markups and...

This note clarifies a number of methodological issues in the treatment of sectoral investment shocks in the article by Stamegna, M., C. Bonaiuti, P. Maranzano, and M. Pianta. 2024. "The Economic Impact of Arms Spending in Germany, Italy, and Spain." Peace Economics, Peace Science and Public...

This note responds to the comments by Garbellini (2026) on the treatment of demand shocks in the Input-Output model in Stamegna et al. (2024). We show that the increase in arms expenditure is correctly identified as an investment shock, while increases in public expenditure on environmental...

Chronic electricity shortages constrain growth and welfare in many developing countries, where load shedding rations demand. Intermittent renewables can ease shortages, but their effects depend on how infeed timing aligns with scarcity. Using high-frequency data from South Africa and an...

Der Bundesländerindex Familienunternehmen vergleicht die Standortqualitäten der deutschen Bundesländer aus der Perspektive von Familienunternehmen. Er blickt in das Innere des deutschen Föderalismus und will damit zur höheren Leistungstransparenz für die Bundesländer beitragen.

Feed-in tariffs (FiTs) have been instrumental in expanding renewable electricity generation but can distort investment by insulating producers from market price volatility. This paper develops a twostage model of electricity markets with stochastic demand and supply shocks, showing that a higher...

Over the past decades, a growing body of research has examined the structural and behavioral barriers that hinder firms from adopting cost-effective technologies to improve energy efficiency. In this paper, we draw on firm-level data from the EIB Investment Survey combined with energy efficiency...

Green investment has emerged as a crucial tool for sustainable development, but its determinants across heterogeneous regional contexts remain inadequately understood. This study examines determinants of green investment across Chinese provinces, focusing on R&D intensity, pollution control...

In an imperfect capital market, firms face financial constraints due to information asymmetry. These constraints have a significant impact on the effectiveness of investment decisions. When either an underinvestment or overinvestment process occurs, it directly affects the firm's value. This...

The yen depreciation from 2012-2015 reduced robot prices for U.S. firms. Paradoxically, financially constrained firms dramatically increased adoption relative to their unconstrained peers. We rationalize this with a collateral model: robots are pledgeable assets requiring non-pledgeable...

Understanding how investors maintain positions during adverse market conditions, investment grip, is increasingly important as retail participation rises and information environments diversify. While prior research identifies demographic, psychological, and economic determinants of investment...