causal relationship among sales and cash flow on the one hand and investment and R&D on the other, using three large panels … investment and R&D are more highly sensitive to cash flow and sales in the United States than in France and Japan. Corresponding …, both investment and R&D predict both cash flow and sales positively in the United States, while the impact is somewhat more …

This paper examines how the investment of financially constrained firms varies with their level of internal funds. We … develop a theoretical model of optimal investment under financial constraints. Our model endogenizes the costs of external … investment is U-shaped. In particular, when a firm's internal funds are negative and sufficiently low, a further decrease leads …

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. …

set of facts about the amplitude of inventory investment and its sectoral and time heterogeneity. … existing methodology by focusing on time and sectoral heterogeneity in high-frequency (quarterly) firm data. We find evidence …

It is well known from nonlinear aggregation theory that distributions play a central role in the determination of …. The accelerated growth episodes observed in Brazil and China demonstrate that the increase in income inequality may have …

the third-order terms, and also test regularity conditions such as homogeneity and symmetry restrictions of the … the theory of utility maximization or the particular functional form used in the model is flawed. We find that the third …

restriction theory of monetary economics. …