in this period. Banks that were more tolerant of risks (that is, whose capital ratio was higher) made a larger amount of …

capital? The answer, based on a simple model of temporary equilibrium, is that ex post is better in theory. In practice …

We employ the EU KLEMS database to estimate the real rate of return to capital in 14 countries (11 in the EU, three … outside the EU) in 10 branches of the market economy plus the market economy as a whole. Our measure of capital is an …, the rate varies widely across the 10 branches, often being implausibly high or low. We also estimate the growth of capital …

This paper analyses optimal irreversible investment policy when profits are subject to a multiplicative geometric … Brownian motion shock. The marginal product of capital is increasing initially and decreasing thereafter. In the latter range … marginal unit is a required multiple of the cost of capital. The multiple reflects the option value of waiting. The optimal …

cross-country income variance can be attributed to differences in (physical and human) capital, and how much to differences … in the efficiency with which capital is used?” Hence, it does for the cross-section what growth accounting does in the … time series. The current consensus is that efficiency is at least as important as capital in explaining income differences …

This paper tests for the importance of cash flow on investment in fixed capital and R&D using firm-level panel data in … investment or R&D. In identical specifications for British firms, cash flow is informative about investment, although not about … the level of R&D spending conditional on the R&D participation decision. In the UK, we also find that investment is less …

This paper uses a new data-set to examine how internal capital markets and foreign ownership affect investment. Our … improve. This suggests that there are internal capital markets that reallocate funds towards units with better investment … data allow us to compare investment behaviour of listed subsidiaries with stand-alone firms while controlling for …