A common claim holds that investment treaties reduce the willingness of host countries to regulate foreign … replacement investment. This paper examines these claims in a stylised setting with a stranded investment and a potential … replacement investment, both of which are protected by an investment agreement. The paper shows how treaty protection weakens …

-goods producers drops during recessions. We then develop a model of lumpy investment with heterogeneous firms and endogenous … equilibrium feedback accounts for the observed comovement between investment and innovation, provides a powerful propagation …