We examine the performance attributes of a merchant transmission investment framework that relies on market driven …' transmission investment to provide the infrastructure to support competitive wholesale markets for electricity. Under a stringent … set of assumptions, the merchant investment model has a remarkable set of attributes that appear to solve the natural …

probability of disaster leads to a collapse of investment and a recession, an increase in risk spreads, and a decrease in the … of business cycle dynamics, especially sharp downturns in investment and output such as 2008-IV …

We study a model of lumpy investment wherein establishments face persistent shocks to common and plant …-specific productivity, and nonconvex adjustment costs lead them to pursue generalized (S,s) investment rules. We allow persistent … the first model consistent with available evidence on establishment-level investment rates. Examining the implications of …

work. we find that a high level of urbanization magnifies the investment reduction in response to an external shock. This … determinant of the private investment response. We look at a simple model of political-economic equilibrium to make this intuition … find that ambiguities abound: domestic politics can magnify or dampen the effect of the external shock. In our empirical …

firm characteristics - Tobin's Q, past investment, earnings-price ratios, market betas, and idiosyncratic volatility of … returns by aggregate investment and valuation ratios; and v) a downward sloping term structure of risk premia for dividend … strips. Our model delivers testable predictions about the behavior of firm-level real variables - investment and output …

This article estimates a dynamic structural model of firm R&D investment in twelve Swedish manufacturing industries and … uses it to measure rates of return to R&D and to simulate the impact of trade restrictions on the investment incentives. R … both the expected return to R&D and R&D investment level, thus reducing an important source of the dynamic gains from trade …

by subsequent embodiments in physical capital. Traditionally, the only distinction between R&D and physical investment … the observed higher volatility of physical investment (relative to R&D expenditures) …

, collectively known as "intangible capital" can explain much of the weakness in physical capital investment since 2000. Moreover …

response of investment to a total factor productivity increase is muted and short-lived, while the response to a decrease is …