Gilchrist, Simon; Zakrajšek, Egon - 2007
trades in the secondary market -- enable us to construct a firm-specific measure of the user cost of capital based on the … quantitatively important effect of the user cost of capital on the firm-level investment decisions. According to our estimates, a 1 … percentage point increase in the user cost of capital implies a reduction in the investment rate of 50 to 75 basis points and, in …