This paper presents a non-technical overview of the recent investment literature with a special emphasis on the … connection between technological progress and the investment decision. First of all, we acknowledge that some dramatic advances …. Nonetheless, this new literature has not satisfactorily accounted for the investment-specific (or embodied) nature of technical …

In this paper, we extend the usual models of irreversible investment under uncertainty by introducing the stock of … public capital as an input for the private sector. Public investment takes place in a stochastic environment. Public capital … equilibrium analysis, as it is standard in models of irreversible investment under uncertainty. Even under uncertainty, the …

motives for investment. Specifically, firms invest to expand capacity and to replace old machines. The model considers … irreversible investment under uncertainty and embodied technological progress. It is shown to be consistent with the following … empirical observations: Investment is lumpy and infrequent at the firm level; firms can invest even if they have not reached …

transmission of bank distress to the real economy - in particular, to real investment and labor employment by nonfinancial firms … supply downsize their real investment and labor employment significantly. This effect is larger for firms that are unable to …

business income to tax authorities, we show that a fall in the tax rate may increase investment in risky entrepreneurial … business equity at the intensive margin, but decrease entrepreneurial investment at the extensive margin. To test these … due to tax avoidance or evasion, but increase investment in private businesses that are also worthwhile in the absence of …