In the presence of lumpy investment cost of adjustment, globalization may have non-conventional effects on the level of … investment and its cyclical behavior. Trade openness may lead to a discrete 'jump' in the level of investment, as it may trigger … a discrete change in the terms of trade. Such a shift creates a sizeable boost in aggregate investment. But trade …

chosen to reproduce the nonlinear relationship between investment and profitability that we uncover in the plant-level data …

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 …

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 …