We examine the neoclassical investment model using a panel of U.S. manufacturing firms. The standard model with no … for firms with low (pre-sample) payouts (firms we expect to face financing constraints). Hem, investment is sensitive to … both firm cash flow and macroeconomic credit conditions, holding constant investment opportunities. Sample splits based on …

strong agglomeration economies in Japanese investment. Two policy variables are consistently shown to influence the location … of investment - foreign trade zones and labor subsidies. We use simulations to explore the impact these policies had on … the geographic distribution of Japanese investment. The simulations reveal that in aggregate promotion programs largely …

basis points, research and development (R&D) spending declines by about 1 to 3 percent and venture capital (VC) investment …

the present value of the returns from an initial investment of [1pound], using the social discount rate, should be equal …

elasticity of investment supply is high--between 10 and 20. Market prices do not react to the subsidy as the theory dictates …-lived capital goods must reflect the full tax subsidy regardless of the elasticity of investment supply. While price data provide no …Investment decisions are inherently forward-looking. The payoff of acquiring capital goods, particularly long …

, progressive taxation as well as investment and output subsidies to the entrepreneurial sector …

This paper examines the investment effects of tax subsidies for which some assets and not others are eligible …. Distortionary tax subsidies encourage firms to concentrate investments in tax-favored assets profitability of investment and …, which in turn discourages investment. Borrowing rates react so strongly that aggregate investment may rise very little, or …

This paper investigates the divisional investment policies of diversified firms. We find that investment of the … smallest division's investment is more sensitive to the cash flow of the other divisions for firms where one expects aggregate … investment to be related to cash flow also, namely low q firms and firms with high leverage. This and other evidence we provide …

We study the effects of monetary-policy-induced changes in Tobin's q on corporate investment and capital structure. We … develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the … evidence, and quantify the relevance for monetary transmission to aggregate investment …