Complicated neoclassical models predict that if investment is sensitive to current financial performance, this is a …, refers to the principle of "growth of the fitter" to explain investment-cash flow sensitivities as the workings of a healthy …

This paper provides the explicit expression of investment facing a binding debt ceiling and the explicit expression of … of the parameterizations of these Lagrange multipliers used in Euler investment equations tests during the 1990's. …