SME investment opportunities depend on the level of financing constraints that firms face. Earlier research has mainly … focused on the controversial argument that cash flow-investment correlations increase with the level of these constraints. We … focus on bank loans rather than cash flow. Our results show that investment is sensitive to bank loans for unconstrained …

alternative in which capital investment requires a planning period. …

Stock market prices are procyclical, while investment good prices are countercyclical. A real business cycle model … calibrated to these observations implies that 75% of the cyclical variation in aggregate output is due to an investment … dimensions, and on two dimensions it does notably better. It is consistent with the facts: (i) employment and investment across …

explicitly favor such investment. This conclusion seems to hold even with the introduction of endogenous mobility, since adverse …