changes in modelling strategy and econometric methodology, over the past twenty years, on estimation of firm-level investment … equations using panel data. Secondly, we try to assess whether the differences in the estimated investment equations, as between … correction, traditional between- and within-firm estimation versus GMM estimation, the investment behavior of French firms versus …

In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms … aggregate investment obtained from adding up the actions of firms subject to aggregate and idiosyncratic shocks, is highly non … postwar sectoral U.S. manufacturing equipment and structures investment. For a given sequence of aggregate shocks, the …

with the cost of capital cannot be found, investment in Japanese manufacturing shows until 1974 a strong association with … of capitalis the major determinant of investment …

Most of the empirical work on investment is based on the existence of a relation between investment and the expected … demand and technology and examine its relation to investment.We find that variations in this present value series are … value series, although significantly related to investment, still leaves unexplained a large, serially correlated fraction …

to vary with the state of the economy, generating cyclicality in investment and debt in an environment where the first … best capital stock is a constant. The government's lack of commitment induces a negative correlation between investment and … and cannot affect the long-run level of investment. Further, restricting the government to a balanced budget can eliminate …

of investment requires a new idea, an "option". When options are scarce, new capital is harder to put in place and the … gradually, as options are used up. Because investment represents an exercise of options, it has an intertemporal substitution …

We develop a model of investment with financial constraints and use it to investigate the relation between investment … between q and investment, relative to the frictionless benchmark. We present a calibrated version of the model, which, due to … this effect, generates realistic correlations between investment, q, and cash flow …

In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms …-of-sample criteria, we find that the model performs substantially better than the standard linear models of investment for postwar … sectoral U.S. manufacturing equipment and structures investment data …

The 90s have witnessed a revival in economists' interest and hope of explaining" aggregate and microeconomic investment … of the investment problem also has been significant. " The concept of sunk costs is at the center of modern theories. The … implications of these costs for" investment go well beyond the neoclassical response to the irreversible-technological friction …

good investment opportunities, but is negatively related to growth for firms whose growth opportunities are either not …