Overall investment is the product of the number of capital goods for which triggering has occurred (the extensive or reductive margin) and the depth of investment per capital good (intensive margin). Based on a longitudinal plant-level data and using dynamic panel techniques we investigated the...

The European Commission conducts an annual survey regarding planned and realized business fixed investment across various manufacturing sectors in Euroland. In this study we investigate the predictive content of survey-based expectations on investment. In addition, we empirically test the...