, investment, and the distribution of funds for consumption, particularly if the windfall is both anticipated and temporary. We … optimal policy involves cutting distortionary taxation in order to raise investment and wages; and where Ricardian consumers … investment in infrastructure. …

The transmission channels through which monetary policy affects business investment remain opaque. This paper examines … the importance of the interest rate and credit channels on business fixed investment in Germany. We have at our disposal …

model features irreversible investment, no capital markets and fixed and sunk costs to export. Several features of the … distribution of investment rates and export participation patterns observed in firm-level data are closely matched in a calibration …

spending – combined with investment theory – to estimate the discount rates used by managers. The standard story predicts that … firms in making their investment decisions.We use a revealed preference approach that relies on the pattern of investment … firms with high stock prices and good investment opportunities should have discount rates that do not differ systematically …

Investment in network infrastructure can boost long-term economic growth in OECD countries. Moreover, infrastructure … investment can have a positive effect on growth that goes beyond the effect of the capital stock because of economies of scale … between infrastructure and economic growth. Time-series results reveal a positive impact of infrastructure investment on …

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 …

being a contentious recent example. Some pundits go so far as to take the position that macroeconomic theory has failed to …