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 …

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 …

with an investment function very close to Kalecki’s original writings. The effects of interest rate variations on the short … endogenously determined equilibrium values of the model do not only depend on the parameter values in the saving and investment … growth with respect to the specification of the investment function. …

set of facts about the amplitude of inventory investment and its sectoral and time heterogeneity. …

the parameter values in the savings and investment functions but also on initial conditions with respect to the interest …

which credit market distortions cause overinvestment. When investment projects are equity financed, or when contracts are …

The paper examines the interpretation of firms' investment-cash flow sensitivity as an artifact of financial market … investment-cash flow sensitivity is discussed as well as some of the macroeconomic implications of financial market imperfections. …

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 …