We study the relation between firm growth and managerial incentive provision under moral hazard when a long-lived firm … provide incentives, but also when outside managers are at a comparative advantage to lead the firm through a new growth phase … dismissal and severance policies. Firms with better investment prospects have higher managerial turnover and rely on more front …

This paper investigates the relationship between infation uncertainty and investment using a panel of loan-level data … investment. Moreover, there is a shift in the composition of investment away from fixed assets and towards working capital - the … more flexible factor of production - and fixed asset investment exhibits periods of inaction consistent with real option …

investment. Uncertainty increases real option values making firms more cautious when investing or disinvesting. This is confirmed … both numerically for a model with a rich mix of adjustment costs, time-varying uncertainty, and aggregation over investment … investment response to demand shocks. This implies the responsiveness of firms to any given policy stimulus may be much lower in …

employment, investment and productivity, and a moderate loss in GDP. This temporary impact of a second moment shock is different …

positive program treatment effect on employment, investment and net entry but not on TFP. OLS underestimates program effects …,300 suggesting that in some respects investment subsidies can be cost effective. …

created the incentives for firms to pay the costs of investment. Trade-induced innovation reinforced the selection effect by … which international trade leads to productivity growth. Finally, using the estimated parameters, simulations evaluate the …

We develop a multi-sector general equilibrium model in which productivity growth is driven by the production of sector …-specific knowledge. In the model, we find that long run differences in total factor productivity growth across sectors are independent of … central to the growth properties of the model economy. …