Gormsen, Niels; Huber, Kilian - National Bureau of Economic Research - 2023
conference calls. We show that, on average, firms move their discount rates with the cost of capital, but the relation is far … time-varying wedges between discount rates and the cost of capital. The average wedge has increased substantially over the … last decades as the cost of capital has dropped. Future investment is negatively related to discount rates and discount …