variable capital investment is reinforced by the irreversibility constraint. Finally, the interaction between the two … irreversibility constraints. The financing constraint implies that firms cannot borrow unless the debt is secured by collateral; the … irreversibility constraint that they can only sell their fixed capital by selling their business. We use this model to examine the …

We set up a dynamic model of firm investment in which liquidity constraints enter explicity into the firm … parameters of the model. Investment is positively related to the firm's internal financial position when the firm is relatively … poor. This relationship disappears for wealthy firms, which can reach their desired level of investment. Borrowing is an …

We consider a dynamic multifactor model of investment with financing imperfections, adjustment costs and fixed and …’ investment opportunities is very noisy. In addition, the test is well specified in the presence of both concave and convex …

(1850–1950) elaborated by one of the authors. This data could be linked with the investment series of standardized National …

machinery investment in the long run and its relative prices and composition, in the period when some authors have sited the …

This paper studies the macroeconomic implications of firms' investment composition choices in the presence of credit …-run dampening of the effects of the shock, at the expense of lower long-term investment and future output, relative to an economy … financing frictions generate large and long-lasting effects on output through their impact on the composition of investment. A …

adverse selection. Our main results are that, by fostering unproductive investment, adverse selection: (i) leads to an … investment and the equilibrium interest rate. Under financial integration, we show how this translates into excessive capital …