Conventional estimates of the impact of taxes on investment may be seriously biased by measurement error in the cost of …, accounting for about 20 percent of the tax term's variance. Correcting for the error with IV estimation shows that taxes … significantly affect both prices and investment and that conventional results may be off by as much as a factor of four …

used estimation techniques in the productivity literature fail in the presence of plausible amounts of measurement error in …. Our main insight is that investment expenditures are informative about a producer's capital stock, and we propose a hybrid … IV-Control function approach that instruments capital with (lagged) investment, while relying on standard intermediate …

This paper estimates the micro-level costs of adjusting capital using detailed data on" investment decisions in the US … clear evidence of non-convex adjustment costs inaction for capital investment and quadratic adjustment costs conditional on … positive or negative" investment. The adjustment costs for utilization show similar non-convexities but with smaller …

Several investment-repatriation strategies are added to the standard model of a multinational in which an affiliate is … alternative strategies can effect real investment throughout the worldwide corporation. We use firm level data for U …

A universal fact of firm-level data is that investment is lumpy: firms either replace a considerable fraction of their … existing capital (spike) or do not invest at all (inaction). This paper incorporates the lumpy nature of investment into the … study of how tax policy affects investment behavior. We show that tax policy can directly impact the lumpiness of investment …

cost of capital on investment. Following the method of Auerbach and Hassett (1991), using cross-sectional data we find that … the user cost is associated with higher rates of investment consistent with previous studies. BEA asset types with greater … significant increases in their investment rates several years after the tax reform. Specifically, we find the magnitude of a 1 …

This paper derives analytical measures of the combined effects of tax changes and adjustment costs on investment and …