Petersen, Bruce Clayton; Fazzari, Steven M.; Hubbard, … - National Bureau of Economic Research (NBER) - 2000
Kaplan and Zingales (1995, hereafter KZ) criticize Fazzari, Hubbard and Petersen (1988, hereafter FHP) and much ensuing research that uses cross-sectional differences in firm behavior to test for financing constraints on investment. This reply identifies flaws in the KZ analysis. The questions...