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 …

Do investment programs create more jobs in tight or in slack labor markets? We study this question using data from a … investment, capital-labor substitution, or regional migration. This leaves crowding-out as the most plausible mechanism. …

This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search … underinvestment on both sides of the market. But when market frictions become negligible, the equilibrium investment levels tend …

We investigate the impact of product market competition on firms’ automation investments. We use a rich combination of … micro-data on Portuguese exporters and exploit a novel source of variation in the degree of competition they face – a tariff … competition in export markets tend to reduce investments in automation technologies. These average negative effects are driven by …