Cummins, Jason G.; Hassett, Kevin A.; Oliner, Stephen D. - In: American Economic Review 96 (2006) 3, pp. 796-810
We use earnings forecasts from securities analysts to construct a new measure of the neoclassical fundamentals that drive investment spending. We find that investment responds significantly to our new measure of fundamentals but is insensitive to cash flow, even for firms typically thought to be...
