Mexico experienced a tremendous expansion of its export-processing maquila sector during the 1990s. At the same time, a … market outcomes in Mexico. We develop a heterogeneous firm model with imperfect labor markets that captures salient features …

There is a lack of clear evidence of the ways in which dividend taxation affects dividend distributions and investment …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief …

In this paper we offer an analysis of the effects of uncertainty about future tax policy on irreversible investment …. The main message of the paper is that investment is not much affected by the degreee of tax policy uncertainty. This is … that reducing tax policy uncertainty is probably no magic bullet to increase private investment spending …

The macroeconomic effects on growth, investment and private sector employment of different ways of rolling back the … cutting public spending on private goods induce an investment boom. Making the tax system less progressive by cutting tax … credits and the income tax rate induces an investment boom as well. The effects of endogenous growth, adjustment costs for …

When investment is irreversible, theory suggests that firms will be “reluctant to invest.” This reluctance creates a … wedge between the discount rate guiding investment decisions and the standard Jorgensonian user cost (adjusted for risk). We …

Is real investment fully determined by fundamentals or is it sometimes affected by stock market misvaluation? We … introduce three new tests that: measure the reaction of investment to sales shocks for firms that may be overvalued; use Fama … misvaluation into standard investment equations to estimate the quantitative effect of misvaluation on investment. Overall, the …

This paper analyses the impact of exchange rate uncertainty upon the pattern of investment in different exchange rate … exchange rate regimes indicates that currency volatility exerts only a small influence upon the level of investment spending …