Doyle, Joanne M.; Whited, Toni M. - In: The Review of Economics and Statistics 83 (2001) 4, pp. 628-637
We test whether smooth industry-level investment dynamics result from explicit aggregation of asynchronous and possibly lumpy firm-level investment. We compare the deviations of optimal from actual firm behavior across industries categorized by their ratios of idiosyncratic uncertainty to the...