This paper analyzes a model of investment with fixed investment costs and capital market imperfections. In this model … finance influences the level of capital firms hold, as well as the frequency at which they invest. In consequence investment …, when the short-run investment function is estimated, liquidity has a significant impact, which is also strongest for strong …

costs firms infrequently carry out discrete investment projects. Therefore, financial variables may influence investment in … two ways. Theoretically, they can alter the frequency at which investment projects are undertaken, or they can influence … finance on investment decisions is substantial. Consequently, finance primarily affects investment frequencies and accordingly …

The paper analyzes investment behavior of industrial enterprises in the period immediately following price and foreign … microeconomic decisions. A dynamic investment function with symmetric adjustment cost function based on the Euler equation has been … estimated. The derived and estimated investment function accounts for export sales in order to determine whether firms evaluate …

In this paper a model of aggregate investment is derived which incorporates fixed investment costs and capital market … imperfections on the micro-level. Aggregate investment reacts nonlinearily with respect to aggregate shocks to productivity and …-run effect of liquidity on investment is found, which is inconsistent with models that explain the empirical correlation of …

This paper makes three contributions: First, I construct annual time series of gross domestic investment and national …-run bivariate relationship between the time series of investment and saving. Third, I also examine the short-run as well as the … cyclical relationships between the time series of investment and saving. The results reported in this paper indicate that there …

investment problems have been formulated. …

economic variable and has turned on the microeconomic and macroeconomic consequences of investment irreversibilities. Thus the … other interesting findings, at the microeconomic level it turns out that the de-mand for replacement investment is not … cannot obtain consistent aggregates of capital stock and replacement investment. …

in capital price and levels of aggregate investment and output. I present a model economy where the industry-level policy …-related investment cost is uncertain. Holding the average one-period investment cost constant, policy uncertainty leads to a higher … capital price and subsequently to lower levels of long-run aggregate investment and output. Policy uncertainty also makes …

In this paper, we examine net investment during the early stages of transition using micro data on the population of … models of investment and test if investment behavior varies across categories of ownership and with the legal status of firms …. Our analysis of depreciation leads us to the conclusion that replacement investment displays a similar pattern in many …

This paper revisits the question if the user cost of capital plays an important role for investment decisions using … intervals are more reliable when model parameters approach the bounds of their support. I use aggregate investment data from six … accounts for less than 10 percent of the variance in investment under the 99- percent confidence level; this result is robust …