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 …

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 …

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

We investigate how labor and investment demand at the firm level (gross as well as net and replacement investment … for the important changes and differences in labor and investment demand between the two subperiods and across the three …

This paper is a contribution to the small but growing literature that compares the investment and R&D behavior of … of a simple error-corrected investment model for both ordinary investment and for R&D investment, a model that … incorporates both output (sales or turnover) and cash flow as predictors for investment. Our focus is on two comparisons: France …